WICS Live: Around the States

New Mexico: State Medicaid Budget in the Red, and Could Reach a $300 Million Deficit in 2011. With more state residents enrolling in Medicaid due to the economy, the state could face a $300 million budget gap in its Medicaid program by next fiscal year. As of September 17th, the state is currently facing a $40 million shortfall in the program that is expected to grow to $60 million in the coming months. The state Human Services Secretary told lawmakers in mid-September that her Department is considering cutting optional Medicaid services, cutting provider payment rates, and eliminating the State Coverage Insurance program, which provides health insurance premium assistance to low-income workers. With the state also facing a general budget shortfall this year and next, Governor Bill Richardson (D) has said he is waiting to see what happens with health reform at the national level before making any decisions for his state.