Counties ask state to fulfill Medicaid cap

According to recent projections from the state, the temporary Medicaid cap that was enacted by the General Assembly last year will not be sufficient to cover the actual increase in county Medicaid costs for 2006-07.

More on Medicaid relief

Through the end of February, counties had spent nearly $24 million more than they had through February 2006. The state now estimates that the increase from 2006 to 2007 will be at least $5 million more than the $27.4 million appropriated by the General Assembly to cap county costs at 2005-06 levels.

“This unexpected increase again shows why counties need to be relieved of this unfunded mandate,” said David F. Thompson, NCACC Executive Director. “Counties around the state will now be scrambling to make up for the unanticipated expenditures.”

Considering that the state will have a significant budget surplus for the second straight year, Thompson said the Association is asking the Legislature to appropriate additional funds to cover the entire amount of the increase for 2006-07. Recent analysts by state fiscal staff project that the state will collect more than $800 million above what was budgeted for 2006-07.

“We know the General Assembly intended to cap county costs at 2005-06 levels to give us time to explore permanent solutions to relieve counties of the Medicaid burden,” Thompson said. “With the state expected to wind up with a revenue surplus of more than $800 million for the 2006-07 fiscal year, we are asking the state to commit to the additional funds necessary to meet this goal.”