Medicaid

Photo Courtesy of South Peninsula Hospital

Healthcare providers may go a few weeks without Medicaid reimbursements. After it became clear that Medicaid funding will run dry about a month short of the new fiscal year, the Legislature included some funding to pay for Medicaid services until July 1 as it passed the capital budget over the weekend. 

Photo Courtesy of South Peninsula Hospital

Healthcare providers may have to wait over a month for the state to reimburse them for services paid for by Medicaid. That’s because Alaska’s Medicaid program will run out of money any day now. The Legislature has yet to appropriate the roughly $48 million needed to fund the program until the end of the fiscal year in June. For some providers in Homer, that gap in reimbursement won’t be detrimental, but others may deplete their savings in order to prevent a gap in services.

Photo Courtesy of South Peninsula Hospital

The South Peninsula Hospital has been looking for ways to fill a budget gap after the state made a 5-percent cut to Medicaid reimbursement rates in September.

The program pays for low-income patients’ hospital bills with state and federal dollars. The cut extends to both inpatient and outpatient care given since July 1, potentially costing the hospital over $1 million dollars.

Photo Courtesy of South Peninsula Hospital

A decision to reduce state Medicaid funding is putting a fiscal strain on the South Peninsula Hospital in Homer. The hospital could receive about $1 million less in Medicaid reimbursements from the state.

When a patient checks the Medicaid box on their hospital bill, the bill is paid with state and federal dollars set aside for Medicaid.