By Dan Conti
Kentucky – Kentucky may have to increase its general fund appropriations by 25 to 30 percent in 2012 to cover rising Medicaid cost. That's what a health care industry consultant and former deputy Indiana budget director has told a panel of Kentucky lawmakers. Kathleen Gifford says the availability of federal stimulus dollars in the last two years has been a big help to state legislatures in reducing their health care costs as a share of the state budget.
"Now this never before in the history of Medicaid, I think, have we ever seen General Fund spending go down. So this is really quite a unique historic event that states have had because of the stimulus funds been able to reduce their General Fund appropriations for Medicaid in 2009 and 2010."
"You're going to see General Fund appropriations have to go up by 25 to 30 percent. It would depend on your state and what your overall match rate and that kind of thing. But this is kind of why 2012 looks like it will be a difficult year for pretty much every state."
Gifford testified before Kentucky's Medicaid cost containment task force.