Musgrove era boondoggle leads to Medicaid windfall.

The Barbour Administration has received verification of a financial error going back to 2003 regarding a change the Musgrove administration made to the formula for paying the state share of Medicare Part B for those known as “dual eligibles” (eligible for both Medicare and Medicaid).

The result is very good news for Mississippi. How good? Well, in a single stroke, there will be No Medicaid cuts this year. In fact, FY ’09 is now in balance.

Here is an excerpt from the statement from Governor Barbour:

While it is irritating to me that we continue to find major problems in Medicaid’s finances, all dating back to the Musgrove Administration, I do appreciate the efforts of staff at DOM in ferreting them out. This is the third problem from the Musgrove Administration with a combined impact on state finances of hundreds of millions of dollars.

Now, for the fourth consecutive year, because of federal funds – first from Katrina emergency health care monies and now from this refund and premium reduction – the deficit at Medicaid has been solved for one year, with one-time, non-recurring revenue.

It would be irresponsible to think another rabbit will jump out of the hat for our next budget. It is, therefore, essential the Legislature finally enact a fair, permanent, sustainable solution to funding the state share of Medicaid as it relates to hospital distributions and reimbursements.

h/t: y’all politics


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