Published: June 13, 2008 01:16 pm      

Medicaid releases list of proposed budget cuts

JACKSON — Mississippi’s Medicaid director on Thursday sent hospitals, nursing homes and other health care providers a list of proposed cuts designed to save $90 million in the coming budget year.

It’s the latest development in a political tussle between Republican Gov. Haley Barbour and the Democratic-led state House of Representatives.

In a letter to the providers, Medicaid director Robert Robinson blamed the House for not acting on a hospital tax plan endorsed by the governor and the Mississippi Hospital Association.

“The Mississippi House of Representatives has consistently refused to support MHA, Medicaid, the Mississippi Senate and the Governor in our efforts to resolve this very serious problem, which demands a fair, permanent, sustainable solution,” Robinson wrote.

The letter was released about the same time House Speaker Billy McCoy issued his own news release saying he wants to sit down with Barbour and Lt. Gov. Phil Bryant to try to negotiate a solution for Medicaid. The new state fiscal year starts July 1.

McCoy, D-Rienzi, said he was “appalled” and “saddened” by Robinson’s letter.

“I’m sure it’s not criminal, but it’s terribly inhumane and unnecessary and creates an awful lot of unease among our most vulnerable. It shows a lack of compassion,” McCoy told The Associated Press.

Lawmakers are on break from a special session that started late last month, and Barbour is trying to pressure the House to accept his plan to plug the $90 million Medicaid budget hole by restructuring the taxes hospitals pay.

The Senate has passed Barbour’s plan, but some House members fear it would force hospitals to pass increased costs on to patients with private insurance.

When it became clear two weeks ago that his plan was stalled in the House, Barbour said he would tell Medicaid officials to draft a list of proposed cuts — most of which would affect hospitals.

Robinson’s letter gives three lists of proposed cuts for hospitals, nursing homes and other Medicaid services and asks providers to tell him by June 20 which list they prefer.

MHA president and CEO Sam Cameron said Thursday that his choice is “none of the above.”

He said hospitals caring for large numbers of Medicaid patients might have to cut staff or services.

“I am not going to say it will be the death knell of hospitals, but it will put some of them in a very precarious situation,” Cameron said.

The governor’s tax plan has been publicly endorsed by MHA, but the association’s leaders also have said they’d prefer to see an increase in cigarette taxes, which are among the lowest in the nation.

House leaders have tried unsuccessfully to increase cigarette and liquor taxes to help pay for Medicaid, a health care program for the needy, aged, blind and disabled and for low-income families with children. About one of every four Mississippians is enrolled in the program.

McCoy said he wants to meet with Barbour and Bryant next week. Lawmakers are set to return to the Capitol June 26 to continue the special session. Barbour spokesman Pete Smith said that within the governor plans to meet with McCoy.