Editorial: States Must Mull Medicaid Cuts Carefully
A New York Times editorial argues, "Even in hard budgetary times, states should not be allowed to cut Medicaid reimbursements without regard to the impact on beneficiaries and providers." It notes that "[m]any states are struggling to balance their budgets by curbing spending on Medicaid" and that California "has far more Medicaid beneficiaries and a bigger budget shortfall than any other state." After California officials in 2008 cut Medicaid payments to providers by up to 10%, "the state was sued by providers who stood to lose revenues, and beneficiaries, who stood to lose health services, on the grounds that the cuts violated crucial provisions of federal Medicaid law," the editorial continues. The case is now before the Supreme Court. The editorial argues that "California's error was that it paid almost no attention to how the rate cuts might affect access to services."
- "A Scalpel, Not an Ax, for Medicaid" (New York Times, 8/11).