State Cuts Medicaid Payments


The final 2010-11 State Budget (Chapter 313 of the Laws of 2010) requires across the board reductions to most undisbursed general fund and state special revenue aid to localities appropriations (including Medicaid, school aid, social services, etc.) effective September 16, 2010. These provisions were enacted to address financial plan deficiencies related to reductions to the enhanced Federal Medical Assistance Percentage (FMAP) authorized by Congress. Based on this recently enacted statute, the State is implementing a 1.1% across the board reduction to all Medicaid payments that are processed on or after September 16, 2010. The reduction will remain in effect through March 31, 2011.


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