Ark. Medicaid shortfall could hit $400M in '13

5:35 PM, Feb 23, 2012   |    comments
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LITTLE ROCK, Ark. (AP) - The Department of Human Services says the shortfall it faces in the state's Medicaid program in 2013 is even higher than expected and could hit $400 million.

DHS spokeswoman Amy Webb said Thursday that officials estimate the Medicaid program will face between a $350 million and $400 million shortfall in the budget year that begins July 1, 2013. Officials had originally estimated that the program would need at least $250 million in additional money that year.

Webb said the increase stems from the department not receiving as much of an increase in its budget for the coming year as it originally requested and because of a drop in the federal matching rate for the program.

Gov. Mike Beebe's budget for the coming year proposes a $114 million increase for Medicaid.

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