State Medicaid faces 'significant’ cuts in services

Posted: November 13, 2012 at 7:01 a.m.
Updated: November 13, 2012 at 12:04 p.m.

— The Arkansas Department of Human Services is preparing for “significant” cuts in services to fill a shortfall of at least $100 million in the state’s Medicaid program.

Department Director John Selig said Tuesday that the Medicaid shortfall will be smaller than the nearly $200 million gap between its funding request and Gov. Mike Beebe’s recommendation for next year.

The department has requested $359 million extra for Medicaid for the budget year that begins July 1, but Beebe’s budget proposal calls for only $160 million in additional funding through general revenue and the state surplus.

Selig said that a smaller growth rate than expected in Medicaid and other savings means the shortfall will be smaller.

Selig planned to detail the shortfall and the proposed cuts to lawmakers Tuesday afternoon.