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Friday, November 20, 2009
Richardson Calls for Medicaid Overhaul
By Barry Massey
Associated Press
By Barry Massey
The Associated Press
SANTA FE — Gov. Bill Richardson's administration is proposing to overhaul Medicaid and scale back health care services to some lower-income New Mexicans to cope with a projected budget shortfall of $300 million next year in the state's largest health care program.
Human Services Department officials told lawmakers on Thursday that Medicaid benefits and eligibility probably would be limited to minimum federal requirements, such as covering low-income pregnant woman and some children.
A package of health care services would be available to other needy individuals — currently covered by Medicaid because the state has expanded eligibility — but they would need to pay premiums and co-pays. Those fees would vary according to income.
The effort to trim Medicaid comes at a difficult financial time. The state faces a half-billion-dollar budget shortfall next year.
Details of the restructuring proposal haven't been completed, and the agency plans public hearings next month to gather comment on what it should do to control the rising costs of Medicaid, which provides health care to 500,000 New Mexicans. Half of those are children.
The program is expected to cost about $3.7 billion this year, with $650 million coming from the state and the federal government picking up the rest.
The department estimates it would need an additional $325 million in state money next year if current benefits and services remain in place. Much of the shortfall resulted from the state's need to replace federal economic stimulus money that's helping to pay for Medicaid.
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