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Beebe: Cuts or new revenue likely for Medicaid

Arkansas Gov. Mike Beebe says the state will likely have to cut some Medicaid services or direct more revenue toward the program to close a shortfall of up to $400 million expected next year.

LITTLE ROCK, Ark. (AP) — Arkansas Gov. Mike Beebe says the state will likely have to cut some Medicaid services or direct more revenue toward the program to close a shortfall of up to $400 million expected next year.

Beebe said Tuesday that raising taxes to help make up the deficit is theoretically possible, but said it's not something he's planning on proposing and not something he's heard as an idea from legislators. State officials say Medicaid faces a shortfall of between $250 million and $400 million for the budget year that begins July 1, 2013.

The governor echoed Human Services Director John Selig's warning to lawmakers that changing how Medicaid pays for services and other efforts to cut costs won't eliminate the shortfall. Beebe spoke in an interview broadcast on the Talk Business website.

 

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