Medicaid in Indiana is projected to be severely underfunded in the coming year.
The latest budget forecast shows that Indiana will not be taking in as many tax dollars are previously thought, which coupled with an unexpected increase in the amount of Hoosiers enrolling and using Medicaid has left the program with a shortfall of nearly $1 billion.
“There is the question of how did this happen,” said State Sen. Ryan Mishler (R). “Just remember, this is a forecast. This is long-term. Currently, we are in great shape. Fortunately, we have a year until the next budget to work on this.”
Cris Johnston, director of the Indiana Office of Management and Budget, said FSSA had to deal with several factors playing into why the shortfall may have happened. He said the agency had to make decisions based on what amounts to “out of date” financial data due to delays in getting the latest numbers on what the state would take in in revenue.
The biggest thing he said might be playing into the shortfall is the increase in the number of Hoosiers enrolling in Medicaid.
“The spending, on the general fund, just a few years ago, three or four years ago, was about two billion dollars,” Johnston said. “It’s not four billion dollars.”
The big question now is what lawmakers will consider to try and make up that amount of money. Johnston said in a press conference about a hearing at the Statehouse on Tuesday that he anticipates some “tough decisions” will need to be made in the near future.
Democrats believe that may mean cuts to spending.
“There are dollars there that we can backfill those shortfalls, so it can’t be all cuts,” said State Rep. Greg Porter (D) on WISH-TV. “Because I know that’s what they are trying to do, is anticipate and create an atmosphere of having to cut people off the program, as opposed to giving people the services they need as far as healthcare.”
Misher said that one thing is clear this kind of shortfall can’t happen again and that they plan to work out ways to avoid such a large shortfall in the future.
The legislative session kicks off shortly after the 1st of the year in just under two weeks
2 comments
This is because of the malfeasance of Dopey Prince Eric the Chinless Wonder of Hoosierville and Senator Mishler that pushed this stupid Medicaid expansion. A couple of years ago about 200 people 18-20 years were on the program. Now there are 30,000 of them The Covid money is gone so the rainy day fund is being spent down very foolishly.
Wake up people. Stop electing RINOs.
I have been trying to receive the Medicare savings program since 2020. I have been given excuse after excuse of which none say I am ineligible. My first application in 2020 at which time I received phone interview and provided requested verifications but to this date no action. Instead, I was given a new case approved but still no payment of Part B premiums. This is truly a shame how the elderly are treated especially during a difficult economic time. Just shameful. I am still in this fight after four years, Cancer and major surgery.