Federal Dollars to Help Heal Medicaid Program

The stimulus package could have a big impact on the Medicaid Program in Mississippi, which makes up around 30 percent of the state's total budget. MPB's Stephen Koranda reports.

More than 700 million in federal dollars for Medicaid in Mississippi is likely over the next 2 years, lawmakers were told in a briefing yesterday. The money will come through increased federal matching dollars the state receives for the healthcare program. Representative Dirk Dedeaux of Perkinston is chair of the House Medicaid Committee, he says as job losses mount, more people will be eligible for Medicaid.

“As our revenue declines, it will not be as much of a burden on us to come up with the necessary matching funds,” says Dedeaux.

Currently Mississippi gets around 3 federal dollars for every state dollar spent. if lawmakers spend the money in a way that expands the program, the state could be facing higher costs after the federal assistance stops at the end of 2010. Steve Holland of Plantersville is chairman of the House Public Health Committee.

“We’ve got to be careful how we craft this, there’s no doubt about it,” says Holland. “We don’t want to be like drunken sailors spending money, but by the same token, it is for economic stimulus. According to the bill, we’ve got to get the money out where the rubber meets the road, so that health care will do it’s fair share of stimulating the economy. I can guarantee you it’ll do it if we put the money out there.”

Medicaid provides healthcare for nearly 600,000 aged, disabled and low-income Mississippians. The program would likely have faced a deficit of more than 100 million dollars this fiscal year.