Alaska Gov. Michael Dunleavy has proposed cutting Medicaid by $249 million to reduce state spending on government, according to Alaska Public Media.
Details about potential state changes to Medicaid are unknown at this time, but providers and patient advocates have expressed concerns about the proposed cuts and the effects they could have on jobs and residents' health, the report states.
State budget policy director Mike Barnhill told Alaska Public Media one method for reducing Medicaid spending will be cutting reimbursement to physicians and other providers.
"Alaska reimburses providers under the Medicaid program at a higher rate than any other state in the country," he said. "And so, we're taking a closer look at that."
Overall, the state seeks a budget that will stay balanced in a sustainable way, and he expects the state will be able to increase efficiency in care delivery through means such as changes to Medicaid-funded travel, governor spokesperson Matt Shuckerow told the publication.
"The governor's focus is trying to find an efficient way that we can provide certain healthcare to individuals across the state, but we can do it in an efficient manner," Mr. Shuckerow said. "What we have seen is basically on this budget and where we are financially is we are out of time and we're out of money."
But the Alaska State Hospital and Nursing Home Association is concerned the cuts could result in negative effects within the industry.
"This could mean hospital closures," Becky Hultberg, the association's CEO, said in the report. "This could mean physicians move out of state. I mean, this could mean that services for all Alaskans look dramatically different than they do today."
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