Medicaid could be cut by $200-million

copyright the Chronicle March 15, 2017

 

by Joseph Gresser

 

MONTPELIER — Vermont is likely to see a $200-million reduction in federal Medicaid funds if Congress passes the version of the American Health Care Act (AHCA) now making its way through the House of Representatives. That was the message delivered Friday by officials of the state Agency of Human Services (AHS) at a press conference here.

According to Corey Gustafson, commissioner of the Department of Health Access, the Medicaid program covers the medical costs of approximately 24 percent of Vermonters. Around 35 percent of Vermonters are covered by group policies provided by employers, and another 22 percent get their health coverage from Medicare, the program for those above 65 years of age.

Another 11 percent are covered by small group policies, military benefits, and federal employee insurance. Only about 2 percent of Vermonters lack any insurance at all, the second lowest percentage in the nation.

Vermont has the smallest percentage of uninsured children, according to AHS Secretary Al Gobeille.

The large reduction in payments is the result of an unfortunate coincidence, he said. The AHCA will cap the amount of money going to states based on the number of patients covered in 2016, a year that the number of people covered was artificially low, Mr. Gustafson said.

Mr. Gobeille said the change in the way funds are allocated to the state could require Vermont to make difficult choices in the years ahead.

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