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Medicaid funding measure fails House of Representatives

Air Date:02/23/2011

By Jackelyn Severin

A measure dealing with Medicaid funding has been killed in the House. Although lawmakers defeated it, the bill brought to light a possible alternative to a ten percent cut in the Medicaid reimbursement rate.

Republican Representative Scott Munsterman is the main sponsor of House Bill 1134. Munsterman says the idea behind the measure is to provide cuts in Medicaid funding but on tiered basis so facilities receiving more of their profits from Medicaid will receive less of a cut.

Munsterman says, “And how its broke down is that a percentage of Medicaid reimbursement will correlate with a certain percentage of cut in the Medicaid system. And so facilities that are more reliant on Medicaid, actually their business model is supported by that meaning that they really can’t sustain a larger cut because they don’t have more diversified revenue stream coming into their facility.”

Munsterman voted to table his own bill. He says its not appropriate to put into statute but he wanted to introduce the concept for further discussion. Munsterman says he hopes lawmakers can still use the idea when deciding the state’s budget.

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