South Carolina to Cut Medicaid Payments by 3%

The South Carolina Department of Health & Human Services announced that healthcare providers in the state will receive a 3 percent decrease in reimbursements for Medicaid services beginning April 4, according to a news release by the Department.

The cuts will remain in effect until June 30, the end of the state's fiscal year.

The cuts, which are dependent on the passing of legislation to allow the Department to cut payments to providers, will generate $7.5 million to help offset the Medicaid program's $125 million deficit. The state's Senate passed a bill last week that would repeal regulations against cutting Medicaid payments to providers. The House is expected to vote on the measure soon, according to the release.

To ensure compliance with federal regulations, certain provider payments — including hospice, Medicare Buy-In Premium, Federally Qualified Health Centers, Rural Health Centers and Catawba tribe providers — will be excluded from the cuts.

Read the release on South Carolina Medicaid (pdf).

Read more coverage on South Carolina Medicaid:

- New GOP Governors Want More Control of Medicaid from Congress

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