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Governor Steve Beshear's Communications Office
Governor Beshear issues special session call to address Medicaid budget & dropout bill
Call issued in response to Senate Republicans’ failure to act, forcing state to prepare for drastic rate cuts to Medicaid providers
FRANKFORT, Ky.— Governor Steve Beshear today issued a call for a special session to begin on Monday, March 14 to address a gap in the Medicaid budget that will cause at least 30 percent rate cuts to Medicaid providers, such as hospitals, nursing homes, doctors, pharmacists and mental health providers. Although 114 of 138 members of the General Assembly supported the approach that Gov. Beshear first announced last November that included increasing managed care efforts to address the gap, today, Senate Republicans, led by Senate President David Williams, decided to go home without resolving the issue.
“David Williams is putting petty politics and his personal ambition before the needs of Kentucky families,” said Gov. Beshear. “His inaction to address our budget gap means I, once again, have to call him back in for a special session to do a job he should have done in the regular session. He is once again forcing taxpayers to pay him twice for a job he should have done in the last two months.”
Recognizing a shortfall in the Medicaid budget, in November 2010 Gov. Beshear proposed transferring $166.5 million from the FY2012 Medicaid budget to FY2011, then capturing those savings through expanded managed care programs and other program efficiency measures. The proposal overwhelmingly passed in a bipartisan manner in the House. However, with just three days left in the legislative session, Sen. Williams proposed an unconscionable plan to make cuts across all of state government, to classrooms and colleges, and to social workers and state troopers. Williams’ plan was rejected by not only Gov. Beshear and House and Senate Democratic members, but also by House Republican members as damaging to the state’s priorities while being simply unnecessary, since there is a viable alternative on the table.
Noting that the state must prepare for the possibility of the General Assembly not reaching an agreement, Gov. Beshear announced today that, as required by the federal law, public notices are being drafted to notify Medicaid health care providers that reimbursement rates will be cut beginning April 1, 2011 in amounts necessary to cover the shortfall in the Medicaid budget in FY2011. The amount of the necessary cuts by service provider type is being calculated and the notices will be issued by the end of this week.
“These rate cuts to health care providers, dictated by Sen. Williams’ refusal to resolve the Medicaid shortfall, not only impact providers, but will likely lead to layoffs and furloughs in the health care industry,” said Gov. Beshear. “Furthermore, the 800,000 Kentuckians who rely on their care will face drastic reductions in health care services, including possible closures of rural hospitals. Sen. Williams can prevent this crisis if he comes back to Frankfort and agrees to a reasonable and responsible proposal to solve the Medicaid budget gap within the Medicaid program.”
The call for the special session, which is to begin on Monday, March 14, also includes the Graduation Bill, which raises the legal dropout age to 18, and enhances alternative education programs to assist students who may be at risk of dropping out.
“Despite not only the need for this important bill, but the public demand, Sen. Williams has refused to permit this bill to reach the Senate floor for a vote for two years in a row,” said Gov. Beshear. “This bill puts our children first and helps create the workforce Kentucky needs to succeed. It is time for Sen. Williams to give this bill the hearing it deserves.”
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