Louisiana's Department of Health and Hospitals is trying to cut $859 million from the state Medicaid program, a reduction that may put some of the state's public and rural hospitals at risk of closure, according to a News Star report.
The $859 million reduction in federal funds is necessary to fund a bill that will support restoration to the roads and coastline of five Gulf States. Congress demanded a cut of $651 million in Medicaid assistance to Louisiana and an increase in the amount the state has to put up to qualify for federal funds. That increased the $651 million to $859 million.
Louisiana Gov. Bobby Jindal signed the state budget into law July 1, which included $651 million in federal Medicaid assistance. That figure represents $425 million in fiscal year 2013 and $226 million in fiscal year 2014. The additional $208 million demanded by Congress was not in the budget, forcing state officials to make additional reductions.
The cut is likely to hit hospitals and clinics within the Baton Rouge-based LSU Health Care Services Division the hardest, according to the report, since those providers treat large numbers of indigent and uninsured patients.
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The $859 million reduction in federal funds is necessary to fund a bill that will support restoration to the roads and coastline of five Gulf States. Congress demanded a cut of $651 million in Medicaid assistance to Louisiana and an increase in the amount the state has to put up to qualify for federal funds. That increased the $651 million to $859 million.
Louisiana Gov. Bobby Jindal signed the state budget into law July 1, which included $651 million in federal Medicaid assistance. That figure represents $425 million in fiscal year 2013 and $226 million in fiscal year 2014. The additional $208 million demanded by Congress was not in the budget, forcing state officials to make additional reductions.
The cut is likely to hit hospitals and clinics within the Baton Rouge-based LSU Health Care Services Division the hardest, according to the report, since those providers treat large numbers of indigent and uninsured patients.
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