The Montana Department of Public Health and Human Services proposed decreasing Medicaid reimbursement to physicians by 3.47 percent to offset potential agency cuts, according to the Independent Record.
Montana passed a law earlier this year that requires mandatory cuts to agencies if the state's revenue falls below projected values. The state's health department will likely have to reduce its budget by $14 million as the state's revenue is an estimated $65 million below the expected amount.
While the department looks to slash Medicaid reimbursements as a solution to reducing its budget, providers are strictly opposing the cuts.
"No one expected this would come out of the providers' budgets," Joshua Kendrick, CEO of Opportunity Resources, an agency that works with individuals with disabilities, told the Independent Record.
Mr. Kendrick added that his agency would lose a projected $400,000 with the 3.47 percent cut, which could result in layoffs.
Montana's health department will hold a hearing on the proposed administrative rule on Thursday.