With about 500,000 Mississippians who have no form of health insurance, Gov. Haley Barbour enters his second term with some tough decisions to make.
Mississippi’s Medicaid program has nearly a $268 million deficit, including some $135 million in red ink that has been the result of a change in federal rules governing how the state pays the Disproportionate Share Hospital funding plan.
Prior to July 1, 2005, Mississippi’s qualified public hospitals transferred state and local funds to the state Division of Medicaid to be matched 3-to-1 with federal funds as part of a Medicaid finance plan.
The public hospitals transferred more than their necessary share to the Division of Medicaid to provide $90 million that was used to draw down $270 million in federal Medicaid matching funds.
Beginning July 1, 2005, the federal government disallowed that financing method. In order to continue to receive the $270 million, the state has to find other means to finance the $90 million that had been matched with public hospital transfers.
Magnolia Tribune
