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Posted
November 28, 2007

Ohio policymakers, officials explore ways to cut, delay Medicaid expenditures

"With stubborn unemployment figures and high foreclosure rates, Ohio appears to be on the forefront of a looming national economic slowdown forecast by the Federal Reserve, which downgraded its previous projections last week in response to problems in the housing market and rising oil prices." This is prompting Ohio policymakers and officials to "explore ways to cut expenditures in a range of areas" including Medicaid. (Source: Gongwer Ohio Report, November 27, 2007.)

The Strickland administration recently announced plans to delay both the restoration of dental benefits for adults and a rate increase for hospitals and providers due to an unexpected increase in Medicaid caseload. Now, "Medicaid stakeholders are watching to see if the administration moves to delay other planned health care expansions that could save the state additional millions. For example, the biennial spending bill appropriates: about $16.3 million in state share over the biennium for the creation of a Medicaid buy-in program for disabled adults; about $24.9 million to increase Medicaid eligibility for pregnant women; and about $6 million for covering individuals that age out of foster care."

Strickland spokesman Keith Dailey said, "The governor is prepared to take the steps necessary to protect the fiscal integrity of the Medicaid program and the integrity of the budget." However, Dailey added that the governor remains committed to implementing the recent Medicaid expansions for children that were passed in the budget, which expands eligibility for the State Children's Health Insurance Programs to children in families with incomes of 300% of the federal poverty level and to create a separate health insurance buy-in program for children from higher income households.