Deltek Sr. Analyst Kate Tussey reports.
As Deltek analysts have been crunching state budget numbers, the health care team has been posting in-depth analysis on Medicaid spending and its impact on budgets. To pay for the rise in Medicaid costs, states are scrambling to shift funding, overhaul programs, and produce creative solutions to close budget gaps. Alabama recently restored $184 million in Medicaid funding by transferring money from the state’s prison system. Like most states in the nation, West Virginia is looking to expand Medicaid managed care; the shift of patients is expected to start in December 2012. The rising cost of health care is the major driver behind the change in tactics, as the legislature budgeted an additional $132 million for next year’s Medicaid spending plan.
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