Report Indicates Nearly Half of All States Plan Medicaid Provider Cuts - June 7, 2011

The National Governors Association recently released its Spring 2011 Fiscal Survey of States, which provides an overview of state fiscal conditions and budgetary measures. Although the survey finds that the conditions of states are slightly improved when compared to last year, a number of states are nonetheless cutting payments to Medicaid providers. For fiscal year (FY) 2011, 24 states have implemented or are planning reductions in Medicaid provider payments. Another 15 states indicated they have frozen or will freeze provider payments. The survey also suggests additional cuts and freezes on provider payments are on the horizon for FY 2012. These payment reductions and freezes represent just two of a number of strategies – including the elimination or reduction of benefits or a delay in expansion of Medicaid – that states are using to contain Medicaid spending in the years ahead.