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Wednesday, March 23, 2011

Full Kentucky Senate May Vote On Version Of Medicaid Budget Tomorrow.

Full Senate may vote Thursday on Medicaid budget
By ROGER ALFORD

FRANKFORT, Ky. (AP) -- The Senate's proposed compromise to shore up the state's Medicaid budget includes cuts to other government programs, a provision that House lawmakers and Democratic Gov. Steve Beshear have already rejected.

Senate Appropriations and Revenue Committee Chairman Bob Leeper said the Senate's plan is expected to receive a floor vote by the end of the day Thursday, sending it back to the House to be accepted or rejected. He said his committee is set to vote on the compromise proposal in a 10 a.m. EDT meeting.

"At this point and time, the best I can tell you is I think we're moving toward a good compromise, something that we believe deals with the issue at hand," Leeper told reporters Wednesday evening. "There will be a strategy to make cuts across the board, and we look forward to explaining that to folks in the morning."

The Paducah independent declined to elaborate on the level of those cuts.

A week and a half into a special legislative session that's costing some $64,000 a day, lawmakers remained clearly divided Wednesday on how to balance the Medicaid budget.

Beshear and House leaders have been pushing to transfer $166.5 from next year's budget to shore up Medicaid this year, then plug next year's $425 million budget gap through privatization. They've already rejected the Senate's proposal for cuts to other government agencies to free up money for Medicaid. That was the deal-breaker that resulted in lawmakers adjourning the regular session earlier this month without a Medicaid fix.

Sen. Gerald Neal, D-Louisville, called on colleagues to move quickly to reach a compromise, telling them that some of the state's most vulnerable citizens would be affected if they do not.

The Medicaid program pays for medical care to more than 800,000 elderly, poor and disabled Kentuckians, including much of the state's nursing home population.

"If we can't get a compromise, we can't it done," Neal said. "And if we can't get it done, then shame on us."

Leeper said questions persist about whether Beshear's administration can find ways to save enough money to balance the budget next year. The Democratic-controlled House believes he can, and made that savings a key provision of the House proposal.

Beshear contends the savings can be achieved in large part by privatizing portions of the program that provides medical care to more than 800,000 elderly, poor and disabled Kentuckians.

Leeper, one of the leading skeptics, said he worries that the Medicaid could be thrown farther out of balance next year if the Beshear administration falls short in the savings, perhaps requiring a major adjustment to the state's two-year budget.

The Senate budget committee spent some six hours Wednesday quizzing Health and Family Services Secretary Janie Miller on the proposal to save Medicaid money by contracting with managed-care organizations to provide selected services. Miller assured lawmakers that the savings could be achieved through managed care and other initiatives within the program.

In an attempt to resolve the impasse, the latest House proposal calls for triggered cuts that would kick in only if the privatization doesn't work. If lawmakers can reach accord by the end of the month, they could head off 35 percent cuts in reimbursement rates to doctors and other Medicaid providers.

Under the House plan, cuts would be mandated on Oct. 1 if Beshear is unable to save enough money. Public schools and higher education would be among the government programs that would be exempted from the potential cuts.

Leeper said the Senate plan offers a different timeline, though he declined to disclose what it is.

The likely next step will be for the Senate and House to appoint a conference committee to try to work out the differences. Conferees who were assigned that task in the previous session failed to get it done.

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The legislation is House Bill 1.

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