Alaska stops Medicaid providers inflation-linked increases

  • Tuesday, June 30, 2015 11:35pm
  • News

ANCHORAGE, Alaska (AP) — The state is facing a $100 million drop in Medicaid funding for the coming year and won’t be increasing rates for providers as a result.

The Alaska Department of Health and Social Services is freezing rates that usually increase to account for inflation each year.

“Where we are is not where we thought we would be as a state,” Health and Social Services Commissioner Valerie Davidson said of Alaska’s gaping $3.5 billion deficit. “We are all having to tighten our belts.”

The state and federal government just about split the $1.5 billion cost of providing more than 120,000 Alaskans with Medicaid. State funding for the program dropped by $51.9 million, but the total reduction is twice that when the loss of matching federal dollars is included.

Freezing rates rather than increasing them by between 1 and 2 percent is expected to save the program $8 million.

Medicaid reform efforts have reduced costs but Davidson says the state is still looking for ways to account for the remaining $23.9 million in eliminated state funds.

Davidson says the rate freeze is one of the least impactful ways to cut the budget. Still, he said consumers would feel the change.

John Cannon is the executive director of Mat-Su Services for Children and Adults Inc., which serves residents with disabilities. He said the nonprofit organization knew a drop in funding was coming, and that next year’s budget will need careful review.

“Clearly our costs are going up, so we’re worried,” Cannon said.

More in News

Shrubs grow outside of the Kenai Courthouse on Monday, July 3, 2023, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Anchor Point man indicted for 3 shootings at Homer family planning clinic, recovery center

The grand jury returned 12 counts total for the three shootings

The entrance to the Kenai Chamber of Commerce and Visitor Center is barricaded on Overland Avenue in Kenai, Alaska, on Thursday, Nov. 21, 2024. (Jake Dye/Peninsula Clarion)
Citing dangerous drivers, Kenai closes one entrance to visitor’s center

The barricade will be removed temporarily on Friday for Christmas Comes to Kenai festivities

A Kenai Peninsula Food Bank truck in the Food Bank parking lot on Aug. 4, 2022 in Soldotna, Alaska (Jake Dye/Peninsula Clarion)
Food bank seeks turkey donations as Thanksgiving nears

The local food bank is calling for donations of $25 to “Adopt-A-Turkey” for a local family in need

Seward City Hall is seen under cloudy skies in Seward, Alaska, on Thursday, Nov. 7, 2024. (Jake Dye/Peninsula Clarion)
Seward budget hearing covers bed tax, wages, emergency medical services

The Seward City Council on Nov. 12 considered a series of legislative items connected to 2025 and 2026 budget

The results of ranked choice tabulation show Sen. Jesse Bjorkman, R-Nikiski, winning reelection in the race for Senate District D. (Screenshot/Gavel Alaska)
Bjorkman, Vance win reelection after tabulation of ranked choice ballots

An effort to repeal ranked choice voting and the open primary system was very narrowly defeated

Jacob Caldwell, chief executive officer of Kenai Aviation, stands at the Kenai Aviation desk at the Kenai Municipal Airport on Thursday, Sept. 13, 2022, in Kenai, Alaska. (Jake Dye/Peninsula Clarion)
Kenai Aviation, Reeve Air submit proposals to bring air service back to Seward

Scheduled air service has been unavailable in Seward since 2002

Erosion damage to the southbound lane of Homer Spit Road is seen on Monday, Nov. 18, 2024, following a storm event on Saturday in Homer, Alaska. (Delcenia Cosman/Homer News)
City, DOT work to repair storm damage to Spit road

A second storm event on Saturday affected nearly a mile of the southbound lane

Kenaitze Indian Tribe Education Director Kyle McFall speaks during a special meeting of the Kenai Peninsula Borough School District’s Board of Education in Soldotna, Alaska, on Monday, Nov. 18, 2024. (Jake Dye/Peninsula Clarion)
Charter school proposed by Kenaitze Indian Tribe given approval by school board

The application will next be forwarded to the State Department of Education and Early Department

Suzanne Phillips, who formerly was a teacher at Aurora Borealis Charter School, speaks during a special meeting of the Kenai Peninsula Borough School District’s Board of Education in Soldotna, Alaska, on Monday, Nov. 18, 2024. (Jake Dye/Peninsula Clarion)
Aurora Borealis charter renewal clears school board

The school is seeking routine renewal of its charter through the 2035-2036 school year

Most Read