There has been a lot of political maneuvering over the past few days that has put the fate of hospital restorations in jeopardy. In HB 1, the Senate restored 75 percent of the Medicaid cuts to hospitals contingent on passage of SCR 81, the Budget Stabilization Fund. The House then concurred with the Senate version of HB 1, but announced this morning that they are not likely to go along with the Senate-approved level of funding from the Rainy Day Fund. Complicating matters more, the Governor also announced today that he is planning to veto contingency language in HB 1. If this language is vetoed and other funding sources are not identified, hospital would be faced with the original reduction levels of over $200 million, which could potentially cause a reduction in over 3,700 jobs in Louisiana.
Of special note, the Medicaid program is funded with 20 percent state funds and 80 percent federal match. There is no reason that the state should put healthcare services and jobs in jeopardy by not utilizing this enhanced match rate.
The Senate has several appropriations measures in the Senate Finance Committee that they can use to restore cuts. The Louisiana Hospital Association and its members are urging legislators to use a combination of funding from the Rainy Day Fund and the Medical Assistance Trust Fund. There is approximately $280 million in State General Funds (SGF) in the Medical Assistance Trust Fund that we believe should be used to restore these cuts.
About the Louisiana Hospital Association
Established in 1926, the
Louisiana Hospital Association is a non-profit organization representing more than 180 hospitals and healthcare provider groups across the state. The mission of the LHA is to support its members through advocacy, education and services. For more information, please visit the LHA website at
www.lhaonline.org.
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