Medicaid Funding Gets Cut

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Governor John Kasich’s first budget proposal slashes Medicaid payments to doctors, hospitals and nursing homes in an overhaul of the program, which consumes nearly a third of the state’s spending.

Already facing a July first deadline for the last of special federal assistance, the governor says that unless things change, Medicaid expenses will become unsustainable. The proposed budget would cut more than four hundred million dollars from nursing home funding, with more focus on at-home care.

POLITICO Health Care reporter Sarah Kliff talks about how states are managing Medicaid and budget deficits. Central Ohio Area Agency on Aging Director Cindy Farson and Ohio Health Care Association Executive Director Peter Van Runkle talk about Ohio’s concerns.

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Medicaid reforms are a key piece of Kasich’s proposed budget (Cleveland Plain Dealer, 3/15/11)
“If we do nothing Medicaid will grow 30 percent over three years,” said Greg Moody, director of the Office of Health Transformation. “That is unsustainable and puts at risk access and benefits to the program for the future. Doing nothing is not an option.”

Kasich “today released what he calls the ‘Jobs Budget.’ But for Ohio’s elderly and disabled it’s the ‘Care Cutting Budget,’” said Peter Van Runkle, executive director of the Ohio Health Care Association, the state’s largest nursing home lobbying group. “Make no mistake, the governor’s budget threatens the quality of care for the most vulnerable among us.”

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