MADISON, Wis. (WTAQ) - A potential revenue shortfall in Wisconsin’s Medicaid programs has grown to as much as $850 million.
Health Services Secretary Karen Timberlake discussed the growing deficit Wednesday with the Legislature’s Joint Audit Committee. The panel ordered a state audit of Medicaid’s Family Care program, designed to keep the elderly and disabled in their own homes instead of nursing homes.
It’s supposed to cost about $1 billion a year, but Republicans say those costs are running out of control as the program expands. It’s in 55 counties now, and it’s scheduled to be in all 72 counties by 2013.
Timberlake said it costs about $1,500 a month less to care for clients in their own homes than in nursing homes. But total costs are rising as the elderly population gets bigger.
Last year, Timberlake was ordered to cut Medicaid in general by $600 million. But she said the economy created a new shortfall due to lower revenues, and a rush of unemployed seeking government health care.
The state has an actual $300 million shortfall in its various Medicaid programs. But if it cuts spending, it will also lose federal program funds, and that could deepen its deficit to $850 million.
Senate Republican Rob Cowles of Green Bay said painful benefit cuts will be needed, plus smaller reimbursements to care providers. But Senate Democrat Bob Jauch of Poplar said the state would abandon the unemployed in their time of greatest need.
