$15B in Louisiana Medicaid contracts stalled by House GOP

[G_j]

Source: New Orleans City Business

John Bel Edwards’ administration for the managed-care companies that coordinate services for 1.5 million Medicaid patients in Louisiana.

The Democratic administration wants to keep the five deals in place for another 23 months beyond their January expiration date. But GOP lawmakers raised concerns about the price tag for the extension: $15.4 billion in federal and state cash.

Annually, the deals account for roughly one-quarter of the state’s operating budget.

Appropriations Chairman Cameron Henry and other lawmakers said they want the health department to try to squeeze more savings out of the contracts and respond to audits raising concerns about the companies’ performance.

Read more: http://neworleanscitybusiness.com/blog/2017/11/06/15b-in-louisiana-medicaid-contracts-stalled-by-house-gop/

[Honeycombe8]

1. La. is in serious financial trouble.

Jindal & his cohorts cut the corporate tax rate 80%, plunging the state into debt. The state has raised the sales tax,and certain parishes added on to that, making it the highest sales tax rate in the nation, I read. Also, some parishes tax groceries and prescription medicines. Looks like what happened is they shifted some of the tax burden from the wealthy to the middle class and poor, because sales taxes disproportionately affect those with lower income.

Jindal also took money out of the public education budget, I think, and routed it to those private charter schools.

It's a mess.

[Angry Dragon]

3. sales tax is a regressive tax

[benld74]

2. Time and effort to redo contracts with 2 years

Remaining is foolhardy and typical GOP can kicking down the road