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Tuesday, May 31, 2011

2012-13 STATE BUDGET SPARES MEDICAID RATE CUTS, BUT NOT GME

By votes of 97 to 53 in the House and 20 to 11 in the Senate, lawmakers on Saturday approved the 2012-13 state budget. The bill cuts state spending by $15.2 billion from current levels, much of that in public and higher education. It avoids the proposed 10-percent cut in physicians’ Medicaid payments but does not take into account any growth in the Medicaid rolls. It avoids steep cuts in public health and mental health programs but slashes spending on graduate medical education (GME) and physician loan repayment programs. TMA supported the Senate version of the state budget, which was far less severe in its treatment of GME and the loan repayment programs, but budget negotiators chose to adopt the House version of those items.

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