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Demand for Medicaid expected to increase
Without federal aid, cuts may be needed
Lawmakers impatient with pace of recovery
By Jan Moller
Capital Bureau
Oct 11, 2005
BATON ROUGE – An additional 60,000 people could become eligible for Louisiana’s Medicaid program in the next six months as residents deal with the devastation caused by Hurricanes Katrina and Rita, further straining the state’s health-care budget, Health and Hospitals Secretary Fred Cerise said Monday.
Testifying before a special House-Senate committee looking into the storms' impact on state government, Cerise said the Medicaid program could face a shortfall of more than $800 million in the current budget. Unless the federal government provides some relief, the state could be forced to cut the program by up to 40 percent to keep it in balance, Cerise said.
The $5.3 billion Medicaid program finances health care for nearly 1 million indigent and disabled people in Louisiana, with the cost shared between the state and federal government. Because the program is open to anyone who qualifies by income or disability, enrollment is expected to jump sharply as hundreds of thousands of people have lost their jobs due to the storm.
A bill proposed by U.S. Sens. Charles Grassley, R-Iowa, and Max Baucus, D-Mont., calls for the federal government to pay 100 percent of the Medicaid costs for hurricane evacuees. But that legislation is bottled up on Capitol Hill. "That bill is not moving, and every day we wait the problem gets worse," Cerise said.
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