Medicaid bears brunt of states' budget crunch (CS Monitor)

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Medicaid bears brunt of states' budget crunch
Healthcare cuts in California and New York could affect thousands.

By Ron Scherer | Staff writer of The Christian Science Monitor
from the August 15, 2008 edition

New York - Low-income Americans, beware.

Facing budget deficits, two of the nation's most populous states, California and New York, are proposing changes in Medicaid that could affect the eligibility of hundreds of thousands of people or decrease funding for hospitals, doctors, dentists, and pharmacists.

Last month, California cut reimbursements to providers by 10 percent. With the legislature deadlocked over the budget, some healthcare facilities are now close to bankruptcy since no money is flowing to providers.

Other states are tacking on fees or cutting funds for charity care in hospitals. And, as more states face falling tax revenues, there could be more cuts by this fall.

"Medicaid is very much in jeopardy," says Iris Lav, deputy director at the Center on Budget and Policy Priorities in Washington.

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One in 5 Americans is covered by Medicaid.

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