Kasich budget: Cut Medicaid spending by $1.4 billion, reform program

Although Gov. John Kasich’s proposed budget released earlier this week calls for reducing Ohio Medicaid spending by $1.4 billion over the next two years, the cuts are being combined with some spending increases and reorganization of the program aimed at improving outcomes (Source: “Kasich's Medicaid plan isn't only cuts,” Columbus Dispatch, March 17, 2011).

In an overview document (pdf, 33 pages) outlining the Medicaid implications in the new budget, the Governor’s Office for Health Transformation outlines what a series of reforms to the program, including:

  • Improving care coordination (including the promotion of health homes)
  • Integrating behavioral and physical health care
  • Rebalancing long-term care
  • Reforming Medicaid reimbursement rules to promote higher-quality care

“This Medicaid budget is challenging but fair,” the report concludes. “It establishes a vision for overall health system performance that is based on better health, better care, and cost savings through improvement. It includes new strategies and tools in Medicaid to move in that direction. And most important, it fulfills the state’s responsibility to provide health coverage for vulnerable citizens while also working to ensure taxpayers get the best possible value for their money.”

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