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Feds stopped Medicaid payments in January; Barnes says small surplus still possible

HARTFORD, Conn. – Gov. Dannel P. Malloy’s budget director reported Wednesday that the state would end the 2015 fiscal year with a small, $300,000 surplus if the federal government agrees to begin reimbursing the state hundreds of millions of dollars for care provided to some Medicaid recipients.

The Centers for Medicaid and Medicare Services stopped payments to the state in January when it found discrepancies in the numbers the state was reporting. Connecticut decided to accept the federal government’s initiative to expand Medicaid eligibility up to 138 percent of the federal poverty level and reimburse the state 100 percent of the costs for some of those individuals. Others in Medicaid would still receive a lower reimbursement rate.

Between January and March, according to the Department of Social Services, the federal government refused to pay the state $249 million for those Medicaid recipients. The number continued to grow through July, but state officials were unable to say Wednesday what exactly the federal government owes the state.

In the meantime, the state has been forced to find the money to make the payments to the health care providers as it looks to reach an agreement with the federal government over how many individuals qualified for the new higher reimbursement rate.

See the complete story at CT News Junkie.

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