PA – Governor Delays More than $1B in Medicaid Payments
September 2017 ~
A shortage in state funds providers in Pennsylvania leads to the delay of over $1.7 billion in payments to Medicaid for at least one week. PA state government acknowledged the delay in a brief statement on the day the state’s main bank account was expected to drop below zero.
The delayed payments include reimbursements for medical care under Medicaid and for the state’s share of pension obligation payments to school employees’ pension fund.
The insurers that administer benefits for 2.2 million Medicaid enrollees have shared concerns that the delays will lead to insurers borrowing the funds to ensure payments are made to hospitals, physicians and pharmacies in a timely manner as required by federal law.
State officials say the fund deficit is due to the current budget stalemate over how to plug a projected $2.2 billion budget hole. The delay marks the first known time that PA has missed a payment as a result of not having enough cash.
According to state lawmakers, if PA Legislature is unable to come to an agreement regarding a plan to support spending levels approved, a spending freeze may need to be issued. The Governor’s office has stated he would speak with top lawmakers by telephone to discuss the budget stalemate.
Source(s): Philly.com; Leavitt Partners; KHN Morning Briefing; York Dispatch; NBC Philadelphia; Penn Live;