Monday, April 21, 2008

Medicaid Money in Mississippi

By John LaPlante

Categories: Medicaid, Mississippi

The Mississippi Legislature is looking at a special session to address a deficit in the state's Medicaid program. The leading options are variations on a theme: increase the cigarette tax (a few people) or tax hospitals (in effect, everyone).

On its editorial page, meanwhile, the Clarion-Ledger blasts the Legislature and governor for not coming to an agreement earlier, saying that a special session will cost taxpayers.

Mississippi is a poster child for the problems brought about by the federal match. Its federal match rate is the highest of the states (that is, it spends money on Medicaid and then gets a generous match from federal taxpayers in other states). Small cuts in state spending result in a much larger cut in overall Medicaid spending, making them nearly politically unfeasible.