Alaska Gov. Michael J. Dunleavy’s cuts to the state Medicaid budget have providers holding their breaths as they wait to see the impacts.
Dunleavy vetoed about $58 million of general fund support for Medicaid programs from the Legislature’s enacted budget on June 28. The Legislature, divided between special sessions in Wasilla and Juneau, failed to override the vetoes, and so the cut stands for now.
Because Medicaid is a federally matched program, the dollars the state cuts lead to forfeited federal dollars as well. The $58 million general fund cut is compounded by those federal dollars, meaning at least $77 million less in total.
Though there’s no immediate impact for hospitals, but one of their concerns is for the end of the next fiscal year, when money starts running out to reimburse providers. The state suspended payments for about two weeks in June due to a Medicaid funding shortfall, forcing hospitals to wait until the turnover of the fiscal year to be paid.