Faced with a $100 million hole in the 2011 Medicaid budget, Kentucky Governor Steve Beshear (D) is proposing to shift money from the 2012 budget to cover the shortfall. He says cost savings projected in 2012 by transforming to a managed care model statewide should cover the difference.
Yet, Senate President David Williams (R) who is also running for governor, is dismissive of Beshear's plan, saying that the governor has not delivered on a previous pledge to contain Medicaid costs.
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Senate President David Williams, R-Burkesville, refused to say whether he thought the Senate would approve such a measure.
But he said the governor must explain to lawmakers why he has achieved only about two thirds of the $125 million in Medicaid cost savings he promised in the current budget.
“This governor needs to explain to the people of the Commonwealth of Kentucky why he has not properly managed the Medicaid system,” said Williams, who is seeking his party’s nomination to challenge Beshear, a Democrat, in his bid for a second term. “He’s got a lot of explaining to do.”
Gov. Steve Beshear said payments to health care providers who see Medicaid patients would fall by 30 percent if the General Assembly does not approve his proposal to balance the program’s mammoth budget.
For hospitals, a 30 percent cut in Medicaid reimbursement for six months would amount to a $247 million loss, said Mark Neff with the Kentucky Hospital Association.