Holden proposing Medicaid cuts

JEFFERSON CITY, Mo. -- Thousands of low-income adults would lose dental and eye-care coverage through the government-funded Medicaid program under budget cuts proposed by Gov. Bob Holden.

To save money, the Medicaid program also would quit paying for over-the-counter medicines, eliminate cash for thousands of disabled people and require some Medicaid recipients to spend more of their own money on health care.

Holden's budget also includes tax increases on hospitals, nursing homes and pharmacies -- all to raise money for Medicaid, a state and federally funded program for the poor and disabled.

None of those measures was mentioned by Holden during his State of the State speech to lawmakers last week.

Most, but not all, are included in a book summarizing Holden's $19 billion proposed budget.

Except for the new tax on pharmacies, which requires legislation, almost all the Medicaid revisions likely will be accomplished through simple rule changes or administrative decisions, said Holden budget director Brian Long.

All told, Holden's plan includes $127 million in "cost controls," according to figures provided by Greg Vadner, director of the state Medical Services Division.

The Medicaid cuts were "all difficult decisions," Vadner said, but they spared reductions to children's health-care services.

Advocates for the poor and disabled criticized Holden's proposed Medicaid cuts, most of which would take effect in the 2003 fiscal year that starts July 1.

"They're saving the state money on one hand," said Peter De Simone, executive director of the Missouri Association for Social Welfare. But "there will be terrible human costs which translate into economic costs later."

Advocates form group

In response to state budget cuts, social service advocates announced last week that they were forming a new organization -- the Missouri Coalition for Budget and Policy Priorities.

The group's chairwoman, Amy Blouin, estimates that tens of thousands of adults could be affected by the elimination of dental and optical coverage through Medicaid.

Most are elderly or disabled.