States Face End of Extra Federal Medicaid Funding
Officials in California and other states are preparing for the end of more than $90 billion in federal stimulus funding for Medicaid. The federal share of Medicaid spending increased to 67% with the stimulus package funding but will revert to 57% next month. To deal with the loss of federal Medicaid funding, California is cutting Medicaid payments to physicians and other health care providers by 10%, establishing higher copayments and limiting beneficiaries to seven physician visits annually. Toby Douglas, director of the California Department of Health Care Services, added that the federal Medicaid funding cut is causing "very consequential reductions in health care and other public programs."
- "States Brace for End of Extra Payments for Medicaid" (Pear, New York Times, 6/15).