By Timothy Costa, Buchanan Government Relations Professional
The President’s FFY 2014 budget postpones Medicaid cuts to hospitals for a full year. When the ACA passed, it had the support of most of the hospital industry because it was assumed DSH cuts would be offset by the addition of more than 17 million people to the ranks of the insured through Medicaid. Then the Supreme Court stepped in and said Medicaid expansion was optional. That decision gives states, including Pennsylvania, the ability to decide on its own whether or not to expand the program. It’s important to note that Pennsylvania’s Medicaid program currently makes up more than 25% of the Commonwealth’s budget.
Does a one year reprieve make any difference? Perhaps. It certainly takes the immediate pressure off Governor Corbett and the legislature to make a quick decision now that the situation will largely stay the same for another year. It also provides an opportunity to see how other portions of ACA, from exchanges to new insurance rules, impact the rest of the insurance market.
http://www.governing.com/news/federal/gov-obama-calls-for-delay-in-medicaid-cuts-to-hospitals.html