Mississippi Health Care Association Files Suit to Stop Medicaid Cuts

The Mississippi Health Care Association, the Independent Nursing Home Association and dozens of nursing homes from across the state filed a lawsuit Thursday seeking to stop the Mississippi Division of Medicaid from making a planned $14 million cut in payments to providers.

The lawsuit filed in Hinds County Chancery Court late Thursday afternoon argues that state reserve funds can be used to shore up the Medicaid budget and the cuts are unnecessary.

The suit seeks an injunction to stop the cuts over the uncertainty of "adequate funding" for providers. The cuts are pending federal permission.

Mississippi Medicaid recently announced plans to cut $14 million in reimbursements to health care providers for services for the remainder of the fiscal year, which ends June 30, because of successive months of revenue collections below estimates. However, tax revenue collections were on target in March.

Calls by Democratic lawmakers to dip into state reserves to close the gap have been rebuked by Governor Barbour (R), who argues the state's savings needs to last for several years.

The largest chunk of money went to public education, and Medicaid was not on the restoration list. About $14 million of an $82 million budget patch-up plan approved by lawmakers, however, was provided via a stimulus-related federal government reimbursement to the Division of Medicaid.