LITTLE ROCK The Arkansas Department of Human Services is preparing for “significant” cuts in services to fill a shortfall of at least $100 million in the state’s Medicaid program.
Department Director John Selig said Tuesday that the Medicaid shortfall will be smaller than the nearly $200 million gap between its funding request and Gov. Mike Beebe’s recommendation for next year.
The department has requested $359 million extra for Medicaid for the budget year that begins July 1, but Beebe’s budget proposal calls for only $160 million in additional funding through general revenue and the state surplus.
Selig said that a smaller growth rate than expected in Medicaid and other savings means the shortfall will be smaller.
Selig planned to detail the shortfall and the proposed cuts to lawmakers Tuesday afternoon.