Health providers read the tea leaves on Medicaid funding

Health providers read the tea leaves on Medicaid funding

Health care providers are closely watching Juneau for signals on whether Gov. Mike Dunleavy will request a needed supplemental appropriation to cover $160 million in shortfalls in the state Medicaid program. The tab may be higher by $10 million to $20 million if there are higher rates of medical services use than expected. There will be other supplemental needs too, such as to cover state costs on last summer’s wildfires. That is estimated at $50 million at the low end. Dunleavy could opt not to do a Medicaid supplemental or doing a small one, which could have the program run out of money next spring. That could leave providers, particularly hospitals and nursing homes, holding the bag for the state underfunding. The other question is how quickly the Legislature will pass a supplemental bill. If action is delayed until late spring, as often happens, the program could still run out of money.


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