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Monday, May 14, 2007
Budget helps
reduce burden
of Medicaid

The N.C. House of Representatives new budget includes $100 million for county Medicaid relief. Columbus could get more than $3.5 million if the Senate concurs.

An amendment to the budget upped the total relief to $100 million, with $50 million going to all counties, $40 million to counties with at least 25 percent of their population Medicaid eligible, and another $10 million to counties whose Medicaid-eligible population is at least 20 percent but less than 25 percent. Thirty-two percent of Columbus County residents are Medicaid-eligible. Only Robeson County will get more money than Columbus.

The $100 million represents nearly 20 percent of what counties are projected to spend on Medicaid services next year.

While counties had hoped for total relief from having to reimburse the state for Medicaid expenses, a 20 percent cut is a reasonable starting place so long as the House and Senate work to reduce the amount in subsequent budgets until the level is at zero.

Granted, state taxpayers will still have to pay for Medicaid reimbursements, but poor counties have been forced to handle an undue percentage of costs. Counties like Wake and Orange counties pay less than 5 percent of their budgets on Medicaid reimbursements.

As a result, counties like Columbus have been spending an inordinate amount on Medicaid, money that could go for schools and other programs.

Reducing the burden on poor counties to pay for Medicaid reimbursement is one way the General Assembly can help equalize the wide disparities between poor and rich counties.


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