The state expects to save more than $100 million from Medicaid expansion. In addition, Louisiana Gov. John Bel Edwards’ administration said it has found several million dollars worth of efficiencies in the state’s healthcare budget as well as monies for education that aren’t needed this year to help fill the budget shortfall, according to the report.
But two of Louisiana’s privatized former charity hospitals — Lafayette (La.) General Health and University Medical Center in New Orleans — questioned the Medicaid savings projections.
“We believe that is absolutely not an accurate reflection of the dollars that would need to be replaced, nor do we believe that the costs that have been under uncompensated care are all directly related to the new enrollment in Medicaid,” David Callecod, CEO of Lafayette General Health, said, according to the report.
Gov. Edwards’ budget chief, Jay Dardenne, backed the Medicaid expansion savings estimates, saying she believes they are accurate based on information from the state’s Department of Health and Hospitals, according to the report.
At the same time, she acknowledged that the budget shortfall figure is not set in stone and could shift again.
Aside from Medicaid expansion savings, Louisiana is also trying to help fill the budget gap through other means. For instance, the state is waiting on a ruling from the federal government as to whether it can increase some payments made by Medicaid providers, according to The Times-Picayune. If the measure got necessary approval, the state anticipates that it could save about $300 million.
Louisiana legislators are also trying to renegotiate with the nine charity hospitals in the state that contract with the state to treat low-income patients.
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