In its mid-year budget briefing, the Corbett administration projects that Pennsylvania’s Medical Assistance costs will rise $650 million in the state’s 2014 fiscal year, which will begin on July 1, 2013.
The budget briefing also noted that the governor has directed state agencies to maintain level funding in their proposed FY 2014 budgets, that level funding essentially means a cut of seven to eight percent because of rising personnel costs, and that the governor “has reiterated that no new taxes will be part of the 2013-14 budget.”
Although the governor does not present his proposed FY 2014 budget for another two months, this raises the question of how the state might pay these increased Medicaid costs – or if next year’s budget might include payment cuts for the state’s Medicaid providers.
Cut would be particularly burdensome to Pennsylvania’s safety-net hospitals because of the especially high numbers of Medicaid patients they serve and their unusual dependence on Medicaid revenue.
Read about the mid-year budget briefing in this PA Independent article and find the budget briefing itself here.