State Medicaid Cuts Continue, Slashing Physician Fees and Hurting Patient Access

Medicaid is facing increasing pressure as states, burdened by budget shortfalls and deficits, reduce benefits and chip away at payments to physicians, according to an Associated Press report.

Almost every state has suggested or implemented a plan to contain costs by cutting benefits or payments, and many are considering more cuts in the years to come. For the underserved patients who benefit from Medicaid, the cuts mean longer waits for physician visits, cuts to vision and dental care, cuts to prescription drugs and other access issues.

The Medicaid program, which costs $427 billion ever year through a combination of state and federal funding, may also undergo federal cuts this year as members of Congress debate how to reduce the national debt. A special committee last month failed to decide how to cut overall spending, so cuts to the Medicaid program may be halted for now.

Some states have used the tactic of cutting physician fees to save money. California, for example, is going through a U.S. Supreme Court case that will determine whether the state has the right to continue cutting payments to physicians and other providers to close the ongoing budget gap.

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