Arizona hospitals say a new state Medicaid funding proposal will cost them $530.7 million.
Gov. Jan Brewer late Tuesday announced a $500 million proposal to cut Medicaid. Instead of her original plan to drop 280,000 people from Medicaid, the new proposal would eliminate about 120,000 people, and reduce provider reimbursement by 5% starting Oct. 1. Medicaid recipients would see more co-payments for services and benefit limits.
Hospitals say the 5% reimbursement cut, in conjunction with an already planned 5% rate cut going into effect in April, would result in nearly $1.3 billion in lost funding. That's including $700 million in Medicaid payment reductions hospital have seen since 2008.