On to the Senate: House approves bill to fix state Medicaid shortfall
By JIM BROOKS
Nelson County Gazette
Monday, May 21, 2011, 10 p.m. – The Kentucky House approved a bill that would plug the $139 million shortfall in the Medicaid budget for this fiscal year and sent it to the state Senate.
The Lexington Herald-Leader reports that House Bill 1 transfers $166 million from next year’s Medicaid budget to fix this fiscal year’s budget shortfall – a move that Gov. Steve Beshear wanted all along. The bill provides automatic budget cuts that will go into effect if Beshear is unable to achieve the savings he believes he can in the next fiscal year. The cuts would not affect the education budgets of state universities nor that of the main funding formula for K-12 education.
The House 94-4 vote came less than an hour after the bill was approved by the House budget committee.
House leaders believe Beshear can save money by implementing a series of managed care programs in the state Medicaid program. If the governor is unable to certify he can achieve the required savings by Aug. 15th, across the board cuts would be implemented to offset the anticipated shortfall.
The bill would not allow Beshear to furlough state employees until he has achieved most of the budget savings.
The bill goes to the Senate for consideration.
Click here to read the details of HB 1.
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