<$BlogRSDUrl$>

Tuesday, January 18, 2005

The ax finally drops

[Scott Rothschild, "State to lose $45 million in federal health care funds," The Lawrence Journal-World, 18 January 2005.
Dave Ranney, "Governor's health care plan likely to clash with Bush pledge," The Lawrence Journal-World, 16 January 2005.]

The GOP just released the details of their counter-proposal to Governor Sebelius's $50 million Healthy Kansas Initiative. The bottom line: no new taxes. While an initial review of the GOP proposal indicates more work can be done, the resolve to hold the line on spending comes at a key time as federal funds look increasingly scarce:

State welfare officials today said the federal government will reduce health care funds to the state by $45 million in a future appropriation.

And the total could end up being twice as much, officials said.

The so-called deferrals are the result of audits done by the federal Centers for Medicare & Medicaid Services of ways that the Kansas Department of Social and Rehabilitation Services drew down federal matching Medicaid dollars.

"It is a significant amount of money," said Gary Daniels, who is chief of the Kansas Department of Social and Rehabilitation Services.

He said another $40 million is in dispute, and there could be future disputes too.


Kansas Health reported on the likelihood of these shady accounting practices coming home to roost as early as last April, so it should come as no surprise that things are ending the way they are. While Governor Sebelius is trying to paint this as heartless, the truth is that the funding mechanisms states use to prop up broken Medicaid programs and "game" the federal government are irresponsible.

Incredibly, in the face of restricted federal funds and a commitment at the federal level to further budget cuts, Governor Sebelius still recommends expanding Medicaid and has embarked on a Quixotic quest against budget realities. Fortunately, some legislators are wising up to the situation:

In 2000, state welfare officials spent $608 million on health care for the poor.

Before this year ends, they'll spend more than $1.3 billion. That's a whopping 121 percent increase in five years.

"We cannot sustain that kind of growth," said Rep. Brenda Landwehr, a Wichita Republican and chairwoman of the House subcommittee charged with assembling the budget for the state's Department of Social and Rehabilitation Services.

"We're going to have to find a way to bring it under control," she said.


[Matthew Hisrich, "Staying the Course: Medicaid Reform in Kansas," The Flint Hills Center for Public Policy, January 2004.]

Comments: Post a Comment

This page is powered by Blogger. Isn't yours?