ATLANTA —
Georgia’s massive Medicaid program is facing a shortfall of more than $300 million in the coming fiscal year, a state official said.
Vince Harris, the agency’s chief financial officer, updated board members on the situation Thursday.
The Georgia Department of Community Health plans to ask state lawmakers for about $308.2 million to make up the gap for fiscal 2013, Harris said.
The looming deficit comes at a time when the state health agency is also facing a significant boost in recipient numbers, The Atlanta Journal-Constitution reported (http://bit.ly/K7f0lj ).
Another 600,000-plus Georgians will be added to its Medicaid rolls starting in 2014, as part of the program’s expansion under the health care law. The program already covers roughly 1.7 million low-income, elderly and disabled Georgians.
“The budget numbers that we have are very daunting,” Commissioner David Cook said.
The health care program also faces a $90 million deficit for the current fiscal year. The debt accumulated in large part because the state legislature failed to allocate funds for money owed in the final month. The payments were for three for-profit companies that manage care for primarily low-income kids and moms in Medicaid.
But things may be looking up, as state officials are in the process of redesigning Medicaid with the hope of cutting costs and improving care.
Cook said the plan will help to address some of the program’s financial challenges.
When care is better coordinated, “You not only get better care but you save some money,” Cook said.
As part of the redesign effort, officials will consider expanding the use of for-profit companies, which can help manage and coordinate care for vulnerable Georgians, including the developmentally disabled and those in nursing homes.
The department will announce details of the changes later this summer.
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