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Spending $30 Million Below Medicaid Global Cap for April 2012

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The Department of Health’s (DOH) April Medicaid global spending cap report for the first month of the state fiscal year (SFY) 2012-2013 shows that expenditures are $30 million, or 2.5% under projections.  State share Medicaid spending for SFY 2012-2013 is capped at $15.9 billion, as enacted by the most recent state budget. 

The report includes sector-specific spending trends and explanations for variation in each provider sector, as well as a delineation of the budgeted $600 million increase over SFY 2011-2012 spending. The report states that the $600 million will include costs associated with price increases such as managed care premiums, pharmacy, and fee-for-service rate changes to inpatient, outpatient, and nursing homes that still await Centers for Medicare and Medicaid Services (CMS) approval; and enrollment growth, which increased by 31,000 in April 2012, reaching 5,094,363 enrollees at the end of April 2012.

The April report states that Medicaid enrollment is projected to increase more slowly than the previous year.  These increases will likely be offset by a net change in one-time revenue and spending actions as well as the continuation of Medicaid Redesign Team (MRT) initiatives.  The state also expects to continue working with the provider community to reduce its accounts receivable for retroactive rates owed to the state during the current SFY.

DOH and the Division of the Budget also announced they will conduct a Webconference in mid-July to discuss the details of the global spending cap projection model.  HANYS will provide details as information becomes available.  HANYS urges members to continue to take a cautious and conservative approach with respect to internal financial budgeting and reporting processes, and to continue driving improvements in quality and patient safety that improve the efficiency and effectiveness of patient care.  Contact:  Edward McGill

Published July 9, 2012