State re-projects Medicaid cases; Sandoval plans to soften cuts

By David McGrath Schwartz

Thursday, April 7, 2011 | 6:57 p.m.

The state will be able to soften cuts to health and human services because of new projections made for Medicaid over the next two years, the state Department of Health and Human Services said today.

The state expects there to be less Medicaid cases, costing less money than originally planned for in January when Sandoval proposed his budget. With additional federal money, as well, the new projections amount to about $69 million in state general fund savings, according to Mike Willden, director of the Department of Health and Human Services. The total general fund budget over two years is about $1.1 billion for Medicaid, so a slight change in projections can lead to large savings and the erasure of some of the most grisly cuts for the poor and sick.

Gov. Brian Sandoval has begun a list of programs to add back, totaling $43 million - the other $26 million is to close budget holes elsewhere in the governor's budget, Willden said.

Sandoval's office released a list of nine general areas he wants to add money to, including:

• Youth mental health

• Autism

• Substance abuse prevention and treatment

• A welfare "loan" program for people waiting for disability

• Hospitals and nursing homes

Willden said the employment projection is up a little bit, two large fraudulent care providers have been uncovered, and more moms and kids are projected to enter Medicaid, rather than the more costly aged, blind and disabled.

Willden said this will take away some of the most painful of the $200 million in cuts his department has sought.

Jon Sasser, an advocate for services, said, "this is way better than not adding back any programs."

But he cautioned that the $150 million in cuts remained painful, and there was still uncertainty for clients. He pointed to a proposal to shift the cost for elder protective services to counties. Counties have said they don't have the resources to cover the program. "These are services that protect the elderly from being abused, physically and financially," he said. "It's not the kind of program that should be up in the air."

Democrats have spent the first 60 days of the 120 day session going through Sandoval's budget. Democratic leadership has maintained that cuts to health and human services and education are too high, but have not persuaded any of their Republican colleagues to buck Sandoval's promise not to raise taxes so far.