Reductions in the amount of state money paid health care providers through Medicaid made as a way to tackle the state’s budget shortfall could result in providers leaving the program, according to the Wyoming Department of Health.
The department, in a report outlining the impacts of its $28 million reduction in benefits it pays for health care for some Wyoming residents, said the reductions will lead to limits on services in some cases.
“In some cases, some Medicaid providers may choose to leave the program entirely, which may create access issues in some more rural or frontier areas of the state,” the department said in a report on its recent budget cuts.
The Health Department was the hardest hit by budget cuts outlined by Gov. Mark Gordon recently to offset a $1.5 billion shortfall in revenues predicted to occur during the current two-year budget period.
Of almost $254.5 million in cuts in spending from the state’s “general fund,” its main bank account, the Department of Health saw the largest reduction, almost $89.1 million.
More than a quarter of that amount, almost $28.2 million, will come from cuts in reimbursements to health care providers from the state.
The cuts would be matched with a $28.2 million reduction in federal funds.
The Department of Health, in its report on the reduction, said the spending cuts would come from a 2.5% decrease in reimbursement rates for health care providers and through service reductions.
The cuts are likely to cause a decline in Medicaid involvement by health care providers, the department said.
“Various second-order effects are likely as well, including Wyoming Medicaid providers limiting services to Medicaid members or in some cases no longer accepting new Medicaid clients,” the report said.
Another spending reduction of almost $3.7 million will be seen in the state’s Children’s Health Insurance Program or “CHIP,” a program that provides low-cost health care for eligible children.
The program had been managed by a private company, but the state received no bids to continue the program during the most recent renewal period.
As a result, the program will now be run through the state, with claims processed through the Medicaid Management Information System, the Health Department said, with lower Medicaid reimbursement rates for health care providers.
The change will save the state $3.7 million without reducing benefits to covered individuals, the department said, although some patients may have to find new health care providers.
“A small number of clients may need to change providers if (the Health Department) cannot convince the providers to enroll due to lower rates,” the report said.
Federal funds to the state to help pay for the program will also be reduced by about $6.8 million, the report said.