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Arkansas lowers Medicaid shortfall projection to $61M

By The Associated Press

This article was published January 31, 2013 at 3:09 p.m.

— Arkansas Medicaid officials say they're no longer proposing cuts to nursing home care and three other areas after lowering the program's expected shortfall to $61 million.

The state Department of Human Services last year had predicted a $138 million shortfall in the program.

DHS on Thursday released a new estimate on the amount of cuts they'll have to make in the program for the budget year that starts July 1 to make up for a funding deficit. The department lowered the projected shortfall after seeing the program come in under budget for the first half of the year.

The shortfall projection assumes that lawmakers approve $90 million in new general revenue funding and $140 million from the state surplus to help shore up the program's budget.

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