Medicaid runs out of money

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Posted 5:42PM on Thursday, March 18, 2004

ATLANTA - The state's Medicaid program ran out of money to pay hospital, doctor and nursing home bills Thursday as a legislative stalemate over the midyear budget dragged on. Senate Republicans blamed House Democrats. House Democrats insisted they were not to blame. The breaking point came at 5 p.m. Wednesday, when the agency received as many bills from providers "as we could afford to pay," said Community Health Commissioner Tim Burgess. Bills received after that point will be held until lawmakers reach agreement on a measure that would give the agency the cash infusion it needs. Money could be rolling again as early as next Tuesday if lawmakers reach agreement before the weekend, he said. The state has the money to pay the bills but it has not yet been appropriated to the agency. The agency began notifying Medicaid providers of the shortfall on its Internet portal. Gov. Sonny Perdue personally informed legislative leaders. In a meeting with some of them, he "reiterated his expectation that they would pass a midyear budget and take care of our kids and frail elderly," said Perdue spokesman Dan McLagan. The agency had been warning of a looming shortage for weeks. Fred Watson, president of the Georgia Nursing Home Association, said the governor and legislative leaders should have taken action earlier. "Right now it appears everybody's playing politics, and people's lives are at stake," he said. The association represents nursing homes with 38,500 Medicaid patients and about 35,000 employees. "It's going to be an immediate crisis," he said. "Most people will be making payrolls Friday and next Friday, and they will not be able to make payrolls." "It's the House's fault," said Senate Majority Leader Bill Stephens, R-Canton. "They're picking politics over people." "They know that's not true," said House Speaker Pro Tem DuBose Porter, D-Dublin, arguing that projects which House lawmakers want to fund but senators do not _ a handful of libraries, technical schools and marinas _ meet important economic development needs around the state. The projects would be financed with money borrowed through additional state debt. Perdue, allied with fellow Republicans in the GOP-led Senate, is resisting efforts to increase the debt load in the midyear budget. House leaders contend the additional debt is minimal and that Perdue is attempting to limit their budget-writing options in a statehouse power grab. The midyear budget includes the state's annual midterm increase in spending for local school systems along with a crucial bailout for the Medicaid program, which was shortfunded last year by some $149 million to make the current budget balance. Lawmakers said at the time they would replace the money in this year's midyear spending bill, which does, in fact, include $171.4 million in new dollars for Medicaid. However, the money cannot be spent until a six-member legislative negotiating team irons out House-Senate differences. "We have put forth a balanced budget with no bonds," said Senate President Pro Tem Eric Johnson, R-Savannah. "We can't do anything else. We can't make them negotiate. We can't make them compromise." He added, "They walked away from the conference table, not us." House Speaker Terry Coleman, D-Eastman, said, "Monday morning quarterbacks are bad enough. Friday morning quarterbacks are terrible. We're still working on the budget. There's still a lot to be decided here, and we're going to proceed."