WASHINGTON (AP) — Many rural hospitals and nursing homes would get fewer federal dollars under a proposal to save Medicaid almost $4 billion over the next five years. The change would have "a significant economic impact on a substantial number" of health care providers, the Bush administration acknowledges.
At issue are financing arrangements between states and local governments. These deals tend to increase Washington's share of spending in Medicaid, the joint state-federal program covering 55 million poor and disabled people, even when a state's share is unchanged or drops.
The federal share of the program ranges from 50% to 76%, depending upon the state. Poor states receive a greater federal share.
In many states, financing arrangements between health care providers and the state result in the federal government paying more than the law says it should. Dennis Smith, director of the federal Center for Medicaid and State Operations, said the proposed rule made public late Friday would put a crimp on that practice.
http://www.usatoday.com/news/washington/2007-01-13-medicaid-spending_x.htm?csp=15