Amount Of Additional Funds Required For Alabama Medicaid Budget Remains Undetermined, State Official Says

November 7, 2007 – 11:56 am | posted in Medicare

Alabama Medicaid Commissioner Carol Hermann-Steckel on Wednesday told state lawmakers she has not determined the amount of additional funds that the Alabama Medicaid Agency will require to address an expected budget deficit in fiscal year 2008-2009, the Huntsville Times reports (Lowry, Huntsville Times, 11/1). During a 90-minute hearing of two joint state legislative committees, Hermann-Steckel, who previously said that the agency would require an additional $199 million, said that she does not “know the number because we haven’t calculated” the effect of an expected decrease in federal Medicaid matching funds in FY 2008-2009. The state had received additional federal Medicaid matching funds for 11 counties affected by Hurricane Katrina, but those additional funds will end in FY 2008-2009, a change that will reduce the amount of funds that the state receives by about $135 million.

Hermann-Steckel said that the agency has entered discussions with the federal government about the loss of Medicaid matching funds. Several state lawmakers criticized Hermann-Steckel for her failure to determine the amount of additional funds that the agency will require and raised concerns about the effect of the expected budget deficit on services for Medicaid beneficiaries (Lyman, Mobile Press-Register, 11/1).

State Sen. Roger Bedford (D), chair of the state Senate Finance and Taxation General Fund Committee, estimated that the agency would require $600 million in additional funds for FY 2008-2009. He said, “I’m very concerned that we have a $600 million problem we’re going to have to deal with in about three months, and there are thousands of Alabamians currently covered at the existing level that won’t be unless we have some innovative thinking from this administration and tough negotiations with Congress.”

Hermann-Steckel did not confirm the estimate and said the agency did not plan to reduce services for Medicaid beneficiaries (Huntsville Times, 11/1).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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