Gov. Strickland Delays Medicaid rate increases

Gov. Strickland has stopped plans to boost reimbursements for hospitals and clinics due to escalating Medicaid caseloads. Gov. Ted Strickland decided it would be prudent to delay the increased health care spending in light of the fact that Ohio's Medicaid caseload has increased steadily during each of the past three months. Gov. Strickland's executive budget allowed for a 3.2% increase in Medicaid reimbursements for hospitals and 3.0% for community providers, such as doctors' offices and clinics that participate in the Medicaid Managed Care program. The Ohio Department of Job and Family Services is of the opinion that implementing the increases as scheduled would have cost about $26 million for community providers and $24 million for hospitals. Beginning in mid-December, the Office of Budget and Management will evaluate caseload figures on a quarterly basis to determine whether the state can afford to implement increased Medicaid spending for hospitals, community providers, and dental services. House Finance & Appropriations Chairman Matt Dolan (R-Novelty) said the decision to stop the reimbursement rate increases was quite a surprise, given that Medicaid caseloads are close to projections offered during the conference committee stage of deliberations on the executive budget. Rather than going into effect in January as planned, the state will recalibrate Medicaid reimbursements in April, allowing hospitals to retain roughly a quarter of the estimated $13 million in payment reductions. Little more than a week after the administration moved to delay some Medicaid expansions, officials announced Thursday that other health care programs called for in the biennial budget would go into effect by late January.

Plans to increase Medicaid eligibility for pregnant women earning up to 200% of the federal poverty level and to cover individuals aging out of foster care up to 21 years of age will go into effect on or before Jan. 31, according to the Department of Job and Family Services (ODJFS). A buy-in program for disabled adults will by implemented by Apr. 1. ODJFS is still awaiting approval from the federal Centers for Medicare & Medicaid Services (CMS) for another initiative that would expand the State Children’s Health Insurance Program (SCHIP). Lawmakers approved the governor’s proposal in the executive budget to boost eligibility for children from families earning 150% FPL to 200% FPL. The delay from the federal government is expected since CMS normally takes 90 days to approve changes to the state Medicaid plan, she said. Meanwhile, Congress has failed to reauthorize SCHIP due to wrangling with the president over proposals to increase spending.