Medicaid funds spared in latest state budget cuts

The Ohio Department of Child and Family Services announced Wednesday that an additional $80 million will be trimmed from its budget, but the cuts will not affect Medicaid benefits (Source: "Ohio poor face $80 million loss,” Columbus Dispatch, Sept. 25, 2008).

Almost half of the cuts, $36 million, will come from money that was set aside for Medicare Part D payments but is not needed, according to state officials. No senior currently using the program is expected to lose benefits.

Gov. Ted Stickland specified that the cuts not affect the $9.3 billion that the state sets aside to fund Medicaid until it is reimbursed with federal funds. However, money used to detect Medicaid fraud will be cut.

The cuts are part of Strickland’s request for 4.75 percent budget cuts at all state agencies to close a $545 million budget deficit. It is the second time this year that state department have been asked to make significant cuts to address budget shortfalls.