- Ohio Law Update
- June 3, 2011 | Author: Alexandra Lebovitz Jorgensen
- Law Firm: Brouse McDowell A Legal Professional Association - Akron Office
- Governor John Kasich proposed to decrease the Medicaid budget by $1.4 billion over the next two years, without proposing to cut eligibility or optional services, such as dental. Ohio is facing an increased demand for Medicaid services while the state’s revenues to pay for those services are declining. Medicaid is the largest program expense in Ohio’s annual budget, accounting for about $1 in every $3 spent with more than 2.1 million Ohioans on Medicaid. This cut would affect payments to providers, jobs for those in the health care field, and care to patients. Nursing homes, hospitals, managed care providers, including doctors, could see Medicaid reimbursement rates cut by nearly $1.1 billion over the next two years.
Nursing homes face $427 million in cuts under the proposed reimbursement schedule. Hospitals could lose nearly $478 million, with children’s hospitals taking the hardest hit. Beyond cuts for providers, the Ohio Health Care Association noted that the decreased Medicaid budget could mean 7,000 job losses statewide.
The state hopes to save costs by focusing on quality of care measures for reimbursement, by making payment classifications more specific, and by not reimbursing hospitals for treating patients who acquired an illness or health condition while they were in the hospital.