From WisPolitics.com/WisBusiness.com …
— Medicaid costs are trending higher than expected, with the program now projected to have a GPR shortfall of $263.5 million when the two-year budget cycle ends, according to the Department of Health Services.
That amounts to general fund costs coming in 2.7% higher than what was expected when the budget was signed last year. The shortfall is also $50.3 million higher than what the agency projected three months ago.
In a letter to the Joint Finance Committee co-chairs, DHS Secretary Kirsten Johnson laid out six factors driving the increased costs:
- Long-term care enrollment is 3% higher than what was projected in the budget. That impact is $33.3 million in GPR.
- Nursing home expenditures are projected to be $79 million higher than what was budgeted, an increase of 9%.
- Enrollment in the program that serves children with disabilities and their families may increase 18% this biennium rather than the 14% projected in the budget. Those expenditures are expected to increase $54 million in GPR.
- Prescription drug costs are projected to be $62.2 million higher than expected, or 9.7%. Johnson wrote two factors are driving that. One, drug company rebates have decreased due to federal policy changes and pharmaceutical industry trends. Two, the costs for prescription drugs are coming in higher than expected and more people enrolled are using them.
- Costs for Federally Qualified Health Clinics are expected to be up $38.7 million, or 18.1%, for the biennium. The clinics serve local communities, particularly those in rural areas, for services ranging from primary care to dental.
The program is jointly funded by the state and federal government. The current projection for overall expenditures is $36.7 billion, compared to the $35.5 billion expected in the budget. For GPR, expenditures are now expected to be $9.9 billion, compared to just less than $9.7 billion in the budget.
— An upcoming event at the Medical College of Wisconsin will explore the potential for AI to help address health care workforce shortages.
The WisPolitics-WisBusiness-State Affairs and Wisconsin Technology Council event is being held May 5 at the college’s Center for Cancer Discovery in Milwaukee, starting at 11:30 a.m.
Panelists include: Dr. John Raymond, outgoing president and CEO of MCW; Nick Myers, director of AI innovation for Recovery.com; UW-Milwaukee’s Lu He, an assistant professor of health care informatics; and Ann Zenk, senior vice president of workforce and clinical practice for the Wisconsin Hospital Association.
See more event details and register here.
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