LITTLE ROCK, Ark. (AP) - The Arkansas Department of Human Services is preparing for "significant" cuts in services to fill a shortfall of at least $100 million in the state's Medicaid program.
DHS Director John Selig said Tuesday the Medicaid shortfall will be smaller than the nearly $200 million gap between its funding request and Gov. Mike Beebe's recommendation for next year. DHS has requested $359 million extra for Medicaid for the budget year that begins July 1, but Beebe's budget proposal only calls in $160 million in additional funding through general revenue and the state surplus.
Selig told reporters that a smaller growth rate than expected in Medicaid and other savings means the shortfall will be smaller. Selig planned to detail the shortfall and the proposed cuts to lawmakers Tuesday afternoon.
(Copyright 2012 The Associated Press. All rights reserved.)