States Eye 2012 Medicaid Cuts

As the U.S. goes through what feels like a painfully slow economic recovery, nearly all states are planning to enact Medicaid cuts for fiscal year 2012 as part of an effort to battle bloated budgets.

Among the actions that states are planning to take:

• 33 states have proposed lowering provider rates to nursing homes, hospitals and physicians
• 16 states have floated provider payment freezes
• 25 states will likely introduce benefit limits
• Limiting spending on prescription drugs
• Enacting or increasing existing copayments

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