Louisiana's $7 billion-plus Medicaid program will need another $450 million in the next budget year just to retain the status quo, the state's health secretary said this week.
Department of Health and Hospitals Secretary Alan Levine said the federal government would require the state to put up a larger share of the program's costs. That means Louisiana will have to come up with at least $200 million in additional funds, he said.
In an interview with [italics] The Advocate [end italics], Levine said Louisiana faces rising costs associated with normal Medicaid program growth as more people qualify for benefits.
The Louisiana DHH submitted the request for increased funding as it submitted its initial budget proposal for the fiscal year that begins July 1. Levine said the $450 million increase translates into a "standstill budget" for DHH.
The requirement that Louisiana pay more of its Medicaid costs is based on economic growth in the wake of 2005 hurricanes, Levine said. The federal government currently pays 72 percent of Louisiana's Medicaid costs while the state pays the remaining 28 percent.
The state will be responsible for paying 32 percent of Medicaid program costs in the next fiscal year and the federal government 68 percent, based on the formula for federal participation, Levine said. He called the 68 percent federal participation rate "well above the average" when compared to other states.
Under a standstill budget, Levine predicted there would be no expansion of services, nor could there be increases in the amount of money paid to hospitals, physicians and others who provide the services.