Medicaid funding escapes cuts -- for now
This is an archived article that was published on sltrib.com in 2010, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Utah lawmakers have managed to squirrel away more money for Medicaid.

In a preliminary budget approved Wednesday by the Executive Appropriations Committee, lawmakers came up with cash to avoid cuts to the insurance program for low-income Utahns -- at least for the coming budget year. The move spares coverage for 10,000 pregnant women and critically sick and injured children and restores outpatient therapies for disabled adults.

But the money will only last through Fiscal Year 2011, which means the cuts could resurface next year.

The U.S. Congress, meanwhile, passed a jobs bill that contains extra federal money to help states weather surging demand for Medicaid. Early estimates show Utah getting an additional $50 million.

But lawmakers won't know how they'll spend it until after they adjourn, which could merit a special legislative session.

Hospitals also are likely to see relief from low Medicaid reimbursement rates.

A bill that would impose what critics call a new "sick tax" on Utah hospitals to leverage more federal funding to cover the costs of treating the poor passed the House by a 56-12 vote Wednesday.

Supporters say SB273 would not mean higher charges to hospital patients and could net as much as $95 million.

Without the legislation, hospitals would suffer a 32 percent decrease in Medicaid payments, said Rep. Kevin Garn, R-Layton, the bill's House sponsor. "Passage of this bill is the highest priority of Utah hospitals and health systems."

The bill will be sent back to the Senate for a concurring vote.

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