Tuesday, February 10, 2009

Senate Compromises May Decrease Medicaid Funding

Deliberations in the Senate, over the size and composition of the American Recovery and Reinvestment Act, have resulted in a loss of 40 billion dollars from the state stabilization fund. This particular fund allocates money to individual states for the purpose of creating new jobs and managing budget deficits.

If the legislation passes with the 40 billion deduction included, North Carolina will receive less than the amount originally intended, which was 1 billion dollars. Spending cuts at the federal level trickle down to state budgets and, in the coming weeks, North Carolina will be considering programs where cuts may be necessary.

Medicaid programs are among those that could potentially see a drop in funding. The Health and Health Services Subcommittee on Appropriations will be looking to cut between 400-500 million from the HHS budget.
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