28 States Plan to Cut Medicaid Payments in FY 2011

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Twenty-eight states propose reducing Medicaid payments and another 20 states propose freezing provider payments in FY 2011, according to a report by the National Governors Association and National Association of State Budget Officers.

In addition, 25 states plan to eliminate or limit benefits; nine plan to delay expansions and eight would add or raise co-payments. Seventeen states would raise provider taxes or fees in FY 2010 and 13 would do so in FY 2011.

"Although the nation's economy shows signs of improvement, state fiscal conditions continue to deteriorate," the report says.

Read the NGA report on Medicaid expenditures (pdf).

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