By KODY FISHER
WISH-TV | wishtv.com
Medicaid in Indiana is projected to have a nearly billion-dollar deficit over the next few years.
The Family and Social Services Administration, or F.S.S.A., presented the staggering numbers to the state budget committee Tuesday morning.
“How did this happen?” asked Democrat State Rep. Ed DeLaney during the budget meeting.
The F.S.S.A. fielded tough questions from the budget committee about how the deficit happened.
The administration explained that their previous forecast in April was not using the most up-to-date data. At the same time, there was an increase in the number of people using and enrolling in Medicaid.
“All of that together actually prompted this challenge,” Cris Johnston, director of the Indiana Office of Management and Budget, said.
The F.S.S.A. said what they’re doing right now to prevent miscalculations from happening again. Medicaid Director at the F.S.S.A. Cora Steinmetz said that the administration is “monitoring really, on a monthly basis at a very detailed level around enrollment and expenditures, utilization, so we can see very close to real-time what might be driving increases in cost and respond appropriately.”
DeLaney asked during the meeting, “So, I guess I have to assume that those careful and important measures have not been employed up until now?”
“We have an opportunity to improve in the level of detail we are reviewing that type of information,” said Steinmetz.
“I’ll take that as a yes, thank you,” was DeLaney’s response.
In a statement, Indiana Gov. Eric Holcomb pointed to money in the state’s reserve funds as a way to help cover the cost of the projected deficit.
“The Medicaid forecast reveals there is work to be done. We have begun a deep dive to understand the factors driving the spending increases and what is causing the unanticipated growth. In the meantime, we will be able to mitigate the fiscal impact while continuing to deliver needed services thanks to a healthy reserve,” he said.
Democrat State Rep. Greg Porter fears Republicans will try to cut programs to make up for the shortfall. “There are dollars there that we can backfill those shortfalls. So, it can’t be all cuts, because I know that’s what they’re trying to do is anticipate and create an atmosphere of having to cut people off the program vs. giving people the services that they need in regard to healthcare,” he said.
Republican State Senator Ryan Mishler said, “This is a forecast, so this is long-term. Currently, we’re in good shape. Fortunately, we have a year before the next budget to work on this.”
As lawmakers on the budget committee came to terms with the projected Medicaid budget, there was a consistent message to the F.S.S.A. about the future.
“It can’t happen again,” Mishler said.
I-Team 8 will continue to follow this developing story to find out how it will impact people on Medicaid.