Medicaid suffering big shortfall

Wednesday, March 20, 2002 | 9:41 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Nevada's Medicaid program will be $30 million to $60 million in the hole by the end of this fiscal year, a state official said Tuesday.

Charles Duarte, director of the state Division of Health Care Financing and Policy, said some new programs may have to be delayed or some proposed rate increases postponed for doctors and hospitals. But Duarte told the Legislative Health Committee that Gov. Kenny Guinn's program for women's breast and cervical cancer prevention and treatment will begin July 1 as scheduled.

The Guinn administration is not considering cutting any of the present programs, he said. But some new programs scheduled to start July 1 may be deferred.

According to the Nevada Legislative Appropriations Report, physicians are to receive a 3.7 percent fee increase for treating Medicaid patients on July 1. Hospitals are to get a 6.7 percent increase for handling outpatients; inpatients rates would go up 2.3 percent. Rates for those providing care for the mentally retarded would rise by 4.8 percent. Nursing homes are scheduled to get a 4.3 percent increase.

The state also planned to eliminate the assets test for determining Medicaid eligibility for pregnant woman and children enrolling in the Child Health Assurance Program. Requiring the test may be a barrier for women to enroll. Eliminating the assets test would promote early access to prenatal care, although keeping the test would save money.

Duarte said no decision has been made on what steps will be taken to overcome the shortfall. Half of the $30 million to $60 million is in state money and the other half comes from the federal government.

He said the administration should have a program ready for an April 10 presentation to the Legislative Interim Finance Committee on how to solve the shortfall.

Assemblywoman Merle Berman, R-Las Vegas, said she heard that breast and cervical cancer testing would be shelved to save money. But Duarte said it is scheduled to go forward. Guinn pushed for this program in the 2001 Legislature.

The latest monthly report shows there are more than 141,000 people enrolled in the Medicaid program, but the state budgeted this year for only 125,524 people. The budget for next year is for 133,142 recipients.

The Legislature authorized $513 million in state funds to pay for Medicaid during this biennium.

A major reason for the increase in Medicaid, Duarte said after the meeting, was the rise in the number of welfare families that took place after the Sept. 11 terrorist attack and the downturn in the economy. These families qualify for Medicaid.