From WRAL.com (11.08.11)
North Carolina lawmakers said Tuesday that they wouldn’t push for deep cuts to social service programs to balance a projected $139 million shortfall in the state Medicaid program.
Department of Health and Human Services officials told lawmakers last month that the agency couldn’t make the $356 million in cuts required in the state budget because lawmakers overestimated some cuts that have to be approved by the federal government.
That process takes months, officials said, but budget writers calculated the savings as if they had started immediately. Other requested cuts would break Medicaid program rules, which could cost the state millions in federal revenue, officials said.
“I don’t have the money within HHS to be able to make up that hole this year,” Health and Human Services Secretary Lanier Cansler told a legislative oversight committee on Tuesday.
About 1.5 million state North Carolina residents – mostly poor children, older adults and the disabled – receive Medicaid coverage.
Unless lawmakers find more money for Medicaid, Cansler said, he would be forced to eliminate many adult services, like hospice care and mental health care, which aren’t required by federal law. The state also could reduce reimbursements to physicians who treat Medicaid patients by up to 20 percent, he said.
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