Second round of federal stimulus money might rescue Wyo Medicaid shortfalls

By Greg Nickerson, Cowboy State Free Press Correspondent

CHEYENNE—The Wyoming Dept. of Health’s Chief Financial Officer told a meeting of the legislature’s Joint Interim Appropriations Committee $30 million in federal funds which could come from a second round of federal stimulus money would help a shortfall in Wyoming’s Medicaid program, the state’s single largest spending chunk.

Bob Peck said there is a general shortfall of almost $92 million for its Medicaid costs.  The shortfall comes as a result of record new enrollments in the state’s Medicaid program, he said.  Between August and December of 2008, 2,550 people went on the program, Peck told the committee.

The latest numbers available for Medicaid expenditures within the state show that $54 million was spent last November, almost $10 million more than average monthly expenditures, an all time high for monthly Medicaid costs.  Expenditures for December were not yet available.

The Department of Health plans to cover most of the $91 million shortfall through federal stimulus funds.  $84 million will come from the American Recovery and Reinvestment Act (stimulus), leaving a $7 million general fund shortfall for the state’s Medicaid program.

Peck estimates that the Department of Health will see a slightly reduced shortfall of $89 million for the 2011-2012 budget, due to a change of room and board funding for children under the care of the Department of Family Services.

Federal funds, money from the budget reserve, and maintaining current provider reimbursement rates will cover most of that shortfall in the next budget, leaving the Medicaid program short some $7 million dollars, Peck said.

Information provided by the Dept. of Health shows a total shortfall in 2009-2010 and 2011-2012 of $14 million, but it is possible that a proposed extension of ARRA program funding in the federal Health Reform Bill will provide $30 million more in funding for Wyoming’s Medicaid program, he said.

Those figures may be a moving target, though, Peck indicated. “We’ve had a huge increase in enrollments since (the latest figures given to the committee).  In August they went up 500, September, 900; October, 700; in November, up over 100; December, up 350.  So we are still seeing an increase in enrollments and obviously that affects where we think we might be,” Peck said.

Even with the possible stimulus money, which is far from guaranteed, the Medicaid budget could have a shortfall of 6 million for 2011 2012, he added.