State proposes Medicaid changes aimed at cost savings

Associated Press
JUNEAU, Alaska (AP) – State health officials are proposing rate reductions for some Medicaid service providers as part of a broader effort aimed at cutting costs.

Gov. Mike Dunleavy’s administration is pursuing a $225 million reduction in state Medicaid spending, about $95 million of which Health and Social Services Commissioner Adam Crum sees as achievable for the coming fiscal year as part of an initial phase.

Details of the second phase are being worked out.

Crum says changes for Medicaid eligibility are not planned.

The initial phase calls for Medicaid provider rate reductions for a range of services, including certain inpatient and outpatient hospital and specialty physician services.

Crum says this would not affect primary care providers, obstetrics and hospitals deemed as critical access facilities in smaller or more remote communities.