From Senator Randy Laverty
February 26, 2010
LITTLE ROCK –
The fiscal session went smoothly, but one dark cloud appeared on the horizon – next year’s Medicaid budget. Medicaid subsidizes health care for the elderly, people with disabilities and the poor. It’s administered by the Department of Human Services.
Cuts of as much as $400 million may be needed, unless Medicaid can manage to lower costs. Medicaid spending is growing by 8 to 10 percent this year because more people are becoming eligible because they have lost their jobs or lost their insurance. Also, the costs of medical care continues to increase dramatically.
Even as the Senate concluded its final day of the fiscal session and lawmakers prepared to go home, individual senators warned of painful cuts they may have to make in future sessions. A reduction in services to people with disabilities would be devastating for their families.
The next regular legislative session will convene in January of 2011. At least 13 members of the Senate will be freshmen because the term limits amendment is forcing that many to retire at the end of the year.
