Massachusetts Medicaid “Savings” in Trouble?

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The New York Times reports

In a new effort to increase access to health care for poor people, the Obama administration is proposing a rule that would make it much more difficult for states to cut Medicaid payments to doctors and hospitals.

I wonder if this will impact Governor Patrick and the Legislature’s reduction in reimbursement levels included in the FY 12 budget?

If yes, there goes another chunk of the $1 billion in projected “savings”–making the near-impossible prediction of reducing per enrollee spending by 3.5% this year all that more improbable. See Poftak’s Do You Believe in Medicaid Miracles?

This is also an interesting move from the Obama Administration as the Secretary of HHS recently advised states to use their “flexibility” in Medicaid to cut benefit levels and kick folks off of the Medicaid rolls. Not sure that helps increase access.