By: Rachel Cohrs
House Democrats proposed an 8% increase in federal Medicaid matching funds to states in Congress’ second legislative package in response to COVID-19, which could ease the burden of the outbreak on state budgets and provider reimbursement.
States operate on balanced budgets and without assistance could be forced to cut Medicaid provider reimbursement or restrict eligibility to make ends meet in a time when hospitals could be stretched thin, said Georgetown University research professor Edwin Park. “Instead of enhancing capacity, you would be moving in the opposite direction and weakening (hospitals’) financial situation, making the safety net less able to deal with an epidemic,” Park said.
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