The Republican plan would replace the Arizona Health Care Cost Containment System, a program that goes beyond the usual state coverage limits, serving 1.3 million people, with a program serving up to 100,000 people, focusing on the seriously mentally ill and the long-term care population.
The bill’s sponsor said the current program is financially unsustainable, but dropping out of Medicaid would cost the state about $7.5 billion in federal funding. A Republican senator who voted against the bill predicted that if the current program were eliminated, “by Christmas time, there will not be a rural hospital open in the state of Arizona.”
Meanwhile, Gov. Jan Brewer is seeking a federal waiver to reduce the program to about 1 million people. HHS said Gov. Brewer could implement her plan on Oct. 1 and still qualify for federal funds.
Read the news report on Arizona Medicaid.
Read more coverage of Arizona’s efforts to cut its Medicaid program
– Arizona’s OK to Cut Medicaid May Open Door for Other States
– HHS Sec. Sebelius Will Allow Arizona to Cut 250K Medicaid Beneficiaries
– Arizona Hospitals Want to Assess $300 Million Bed Tax to Counter Medicaid Cuts
