State will increase Medicaid reimbursements to health providers

By Bradners’ Alaska Legislative Digest

The Department of Health and Social Services is proposing to increase Medicaid provider payments an additional $17 million in 2009, an amount lower than the $24 million rough early estimate that was originally in the health and social services budget. Many health service providers have not seen an increase in payments for Medicaid patients for years, although hospitals and nursing homes get automated rate adjustments every two years. Rep. Mike Hawker, R-Anchorage, who chairs the House Finance subcommittee, is unhappy that the estimate came in on Feb. 13, late in this year’s rushed budget process. More adjustments for providers may be in the works after the department’s consulting company, Myers and Stauffer, complete a rate review later this spring. The Health and Social Services budget is a big-ticket item: The department is asking for a $143.8 million general fund budget increase this year and is likely to get the bulk of it.