Medicaid solved; let's move on

August 03, 2008 12:48 am

— Call it pulling a rabbit out of his hat, call it the best news the governor's given us since Toyota ... whatever you call it, Gov. Haley Barbour's plan to fix Medicaid is one that will hopefully end the months-long battle over the issue.
More importantly, it will end worries of a healthcare crisis — one that could have resulted in reduction in services, hospital closures and lost jobs.
The governor's office worked on the latest solution for weeks after a Hinds County chancellor ruled July 10 the governor, as head of the Division of Medicaid, could adjust the gross revenue assessment on hospitals as it relates to a Medicaid program called upper payment limit, or UPL. On Friday, the governor received approval from the federal government — via the Centers for Medicare and Medicaid Services — for the plan.
This will all be done through the state's ability to collect the state share of Medicaid's UPL program through the gross revenue assessment — the tax in which the governor has been authorized to adjust.
In short, his plan will raise the rate in which hospitals are taxed — which will fund Medicaid's $90 million deficit. Federal dollars will then be used to reimburse the hospitals at a higher rate than before. The end result: the deficit is all but solved with hospitals paying a stiffer rate to the state in the beginning, but most being reimbursed at a comparable rate by the federal government in the end.
The best part: it takes no further legislative action, meaning no more public debates and battles over the issue. Basically no more political mud-slinging ... well, we’re sure you'll see at least a little more of that by the time Monday's special session rolls around.
Some House Democrats have voiced concern over the fact that the governor dealt with this issue on his own and side-stepped them. Others will no doubt still believe the governor won by fixing Medicaid without increasing the tobacco tax.
But we hope state lawmakers will move on and not fight this. This is not about Haley Barbour. This is about making sure the neediest of our population continue to get the care they need. An increase on the tobacco tax is no doubt needed, and we believe it will be passed in the next legislative session. We hope it will not be used as political fodder to continue to muddy this issue. Let's move on.
It sounds simple enough, but trust us, it's not. The above description of the governor's plan to fix Medicaid is about as oversimplified as it gets. There were countless hours of hard work by the Division of Medicaid and other staff members — including hospital administrators throughout the state — who helped in finding this solution.
Thanks to their work and the governor's leadership, we can hopefully put this issue of Medicaid behind us ... at least for now.