State awaits word on Medicaid help from feds

Millions of budget dollars are not guaranteed

MIKE MADDEN , AND BRAD SHANNON, THE OLYMPIAN

Originally published Friday, March 1, 2002

WASHINGTON -- A federal Medicaid payment that Gov. Gary Locke's budget is counting on is not a sure thing.

State and federal officials are scheduled to meet today in Seattle to talk about how much money the state might get.

Locke's budget assumes $350 million in reimbursements above what ordinarily is received for Medicaid nursing care.

That is $150 million more than what is assumed in the state's operating budget, which was approved in June.

Officials say the state qualifies for the extra federal payment because it has not received the full amount they think it qualifies for under federal law.

How did that happen?

The state's actual costs for nursing care were higher in past years than the estimates the state gave the federal government at the time.

Federal officials are balking at letting the state increase the payment level for past budget periods, said Thomas "TJ" Johnson, reimbursement manager for the Washington state Department of Social and Health Services.

Another budget hit?

Depending on how the state's plan is interpreted, the federal government might not be obligated to pay the full amount Washington is seeking, a Medicaid official said.

If all the money does not come through, the state's $1.6 billion budget shortfall for the current two-year fiscal period would get even worse, requiring further cuts in programs and services and possibly tax increases.

State health authorities say they expect negotiations to lead to Washington getting all the money the budget calls for, but no final agreement has been reached.

"Nothing is definite at this point," said Pam Negri, spokeswoman for the regional Center for Medicaid and Medicare Services in Seattle.

If the federal agency refuses to pay the amount Washington asks for, the state can appeal to a federal Department of Health and Human Services panel.

In an attempt to head off any of that, the delegation from Olympia is meeting with regional federal Medicaid officials in Seattle, Johnson said.

State officials declined to say exactly how much money they think they can get from Medicaid, saying they did not want to spoil ongoing talks.

When the situation will be resolved also remains unclear.

"The time frame is completely open," said Tom Bedell, deputy assistant secretary for social and health services.

"If negotiations go well, it could move fairly quickly."

Members of the Washington congressional delegation said they hope the state will get the money.

"This is money that's critical for health care in Washington state," Sen. Patty Murray said. "It's important to protect the integrity of Medicaid, but we must also provide health care to the most vulnerable. And in Washington state, that is what this funding would do."

On the Web:

- Washington State Treasurer

- Gov. Gary Locke

- Washington State Legislature

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The Olympian Copyright 2002

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