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Saturday, March 19, 2011

Some Question Need For Special Session.

Some question need for special session on Medicaid

FRANKFORT, Ky. — As lawmakers head into the second week of a special legislative session arguing over what to do about a $139 million Medicaid shortfall, some are wondering if it’s really necessary, given that the shortage is not the first in recent years.

“We’re up here needlessly,” said Rep. Jimmie Lee, an Elizabethtown Democrat who is the chairman of the committee that oversees the Medicaid budget. “We’ve never done this (in a special session) before, and there’s no reason to now.”

Noting that periodic shortfalls in the fast-growing federal-state health plan for the poor and disabled are hardly new, Lee argues that Gov. Steve Beshear deserves some leeway to manage his way out of the problem before cuts in other areas are considered.

Beshear was able to cope after former Gov. Ernie Fletcher, a Republican, left behind one of the state’s largest Medicaid shortfalls — more than $240 million — when his term ended in December 2007.

Lawmakers responded by approving an extra $112 million for the program in early 2008 and allowed Beshear to make up much of the rest through efficiencies. The extra money was approved even though the state was facing a difficult budget, as it is now.

“I didn’t hear a peep out of any legislator — not one peep,” Lee said.

This year Republicans who control the Senate refused to approve Beshear’s request for extra Medicaid money without cuts to other areas — including education — to pay for it.

Beshear had proposed moving $166.5 million in state funds from the next fiscal year’s Medicaid budget, and compensating for the transfer through efficiencies in the program next year.

The House and Senate were unable to agree on an approach in this year’s regular session, which ended last week, and Beshear immediately called them into special session this week.

There’s still no agreement. House leaders are working on what they say is a compromise — they haven’t released many details — but the Senate’s leadership is still voicing skepticism.

Editor's note: To continue reading, go here.

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