States Eye Medicaid Cuts To Tackle Budget, Cost Issues

States facing budget shortfalls and rising health care costs are testing a variety of strategies to limit Medicaid spending. Although the federal health reform law requires states to maintain Medicaid eligibility and enrollment standards through 2014, states are permitted to cut optional Medicaid benefits. Some states already are reducing such benefits, including prescription drug coverage, vision and dental care, and visits to certain specialists, while others are limiting coverage for hospital stays. Such plans require federal approval, which many states already have been granted.

• "Optional Medicaid Benefits Face State Cuts" (Galewitz [1], Kaiser Health News/USA Today, 10/24).
• "More States Limiting Medicaid Hospital Stays" (Galewitz [2], Kaiser Health News/USA Today, 10/24).