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Wednesday, July 6, 2011

States Cutting Medicaid Rates, Healthcare Programs At Risk in Budget Negotiations

Several states, including Colorado, began their fiscal years on July 1 by reducing Medicaid payment rates to providers and hospitals. A Kaiser Health News report outlines various states’ changes in Medicaid, including payment and benefit reductions, that may further compromise access to care for Medicaid recipients.

In Washington, Medicaid and Medicare program cuts are under consideration as political leaders negotiate budget and debt issues. Negotiators are discussing serious reductions in Medicaid, including reducing the federal matching rate to the states and limiting or eliminating the Medicaid hospital provider fee that both supports Colorado’s coverage expansions to the uninsured and our hospitals that care for the un- and underinsured. Negotiations are expected to continue for the next several weeks as the national debt ceiling limit approaches on August 2nd. Given the critical role that Medicare and Medicaid play in rural communities, CRHC has been communicating with Colorado's members of Congress about these issues and will be sharing opportunities for you to contact your member directly in the coming days. Please contact Sara if you have any questions.