Alabama Medicaid Budget Remains Unknown
The loss of federal funds for Hurricane Katrina recovery efforts, as well asincreased per capita income in the state, will result in a loss of federaldollars for the Medicaid program, but state Medicaid Commissioner CarolHermann-Steckel said the amount of the reduction was unknown. Medicaidofficials in October estimated a loss of at least $135 million in federalfunding, but Hermann-Steckel refused to comment on the figure.
According to Hermann-Steckel, the Medicaid office is considering how inflationand cost-savings programs would affect each item on the budget (Lyman,
State Sen. Roger Bedford (D) said, "I'm very disappointed that a Cabinetmember of this administration that controls 25% of the spending in the generalfund budget is not able to present us with numbers 60 days out." Heestimated a loss of up to $600 million in federal funds, but Hermann-Steckeldisputed the numbers (Lowry, Huntsville Times, 11/29). Rep. Artur Davis (D-Ala.)said that the federal government had not taken adequate measures to makefunding adjustments and "has been the model of irresponsibility in thisarea" (Mobile Press-Register, 11/29).
Reprintedwith permission from kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign upfor email delivery at kaisernetwork.org/email . The Kaiser Daily Health PolicyReport is published for kaisernetwork.org, a free service of The Henry J.Kaiser Family Foundation.