New Hampshire Legislature Approves $50M Budget Cut, Including Medicaid, Health Programs

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Health Insurance / Medical Insurance;  Public Health
Article Date: 27 Feb 2008 - 5:00 PDT

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The New Hampshire Legislature on Friday approved $50 million in cuts to the fiscal year 2008 state budget, including reductions in Medicaid hospital payments, AP/Foster's Daily Democrat reports. Funding for the state Health and Human Services Department will be reduced by $22 million, and the largest cut is about $7 million in Medicaid payments to hospitals. According to the AP/Daily Democrat, state spending for the department also generates federal matching funds, "so the total impact on the agency's budget is much larger." In addition, funding for the New Hampshire Cancer Plan will be reduced by $1.7 million this year.

State HHS Commissioner Nicholas Toumpas said he has asked hospitals for input on how to implement the hospital payment reductions, adding that the plan must take into consideration hospitals in the northern area of the state, which would have a more difficult time absorbing an across-the-board cut.

Gov. John Lynch (D), who requested the reductions, said that unforeseen economic events led to the need for budget cuts. He added that he also will propose reductions to the FY 2009 state budget proposal (Love, AP/Foster's Daily Democrat, 2/22).

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