Beebe proposes new spending, cuts to address Medicaid shortfall (Arkansas News)

November 13, 2012 – An estimated 75,000 Arkansans would be affected by $319 million in cuts to health services ranging from dental treatment to nursing home care being proposed as part of Gov. Mike Beebe’s plan to address a looming shortfall in the state Medicaid budget. Lawmakers meeting at the Capitol for budget hearings in advance of the 2013 regular session heard Tuesday that the state Medicaid program faces a projected $298 million shortfall in state funds in the fiscal year that starts next July and that Beebe is proposing a combination of new spending, efficiency measures and cuts in services to cover the deficit. State Department of Human Services Director John Selig told legislators the shortfall is largely the result of a decrease in the federal matching rate for Medicaid funding, prompted by economic growth in the state.

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