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Medicaid Digest week ending October 27, 2012

By Healthcare Finance Staff

National Medicaid enrollment, spending down; Pennsylvania to allow 100K families booted from Medicaid back into program; and South Carolina's enrollment projection may be too low in this week's Medicaid Digest.

Report: Medicaid enrollment and spending slowed significantly in 2012

Growth in both enrollment and spending for Medicaid slowed significantly for states in fiscal year 2012 amid an improving economy and states' efforts create programs aimed at controlling costs, according to a new report from the Kaiser Family Foundation.

Spending on Medicaid programs increased by just 2 percent in FY 2012 down significantly from an increase of 9.7 percent in 2011, and it's the lowest rate of Medicaid spending growth since 2006, when spending grew by 1.3 percent.

"After several economically depressed years in which high demand for public programs and slumping tax revenue created intense pressure on state Medicaid programs, last year saw total Medicaid spending growth hit a near record low," said Diane Rowland, executive vice president of the Kaiser Family Foundation and executive director of the Foundation's Commission on Medicaid and the Uninsured, in a press release announcing the findings. "Reining in costs remains the dominant theme, but the improving economy has offered states more leeway to move forward on delivery system reforms and implementation of the Affordable Care Act."

100K families booted from Pennsylvania Medicaid program can get back in

More than 100,000 families who were purged from Pennsylvania's Medicaid systemin during money-saving actions will get a chance to be reinstated in the program based on a settlement reached recently with the Department of Public Welfare.

"We are happy to say that both sides have reached an agreement that benefits working families and people with disabilities," Richard Weishaupt, an attorney for Community Legal Services of Philadelphia, said in a preprared statement.

Advocates for the families say they were purged from the system improperly. Under the terms of the settlement, households that were affected by the purge can submit a one-page form asking to be reinstated in the program. In addition they can also apply to be reimbursed for any medical expenses incurred since they were dropped from the rolls.

South Carolina may have underestimated number eligible for Medicaid

South Carolina's Medicaid Director Tony Keck told state legislators earlier this week that the number of people already eligible for Medicaid that are signing up for the program are exceeding estimates and could result in a significant budget shortfall.

Keck's budget for the Department of Health and Human Services calls for an increase of $194 million in fiscal 2013-2014, with about $70 million due to federal health reform, as the state expects half of those already eligible for Medicaid to seek coverage.

"I can't caveat this enough to talk about the uncertainty in the projections," Keck said in a AP published report. "If 75 percent show up, we're automatically behind."

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