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.
More Articles on Hospitals and Medicaid:
Florida, Wisconsin, Louisiana, Other States May Refuse Medicaid Expansion Under PPACA
9 Recent Medicare, Medicaid Issues
PPACA Upheld: 8 Issues Hospitals Should Keep in Mind Moving Forward
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
