A $678 million increase in the Department of Health and Hospitals’ budget— an 8% funding jump for the state’s largest agency—had lawmakers questioning today how the growth can be sustained and what future cuts will have to be made. In budget documents presented to the Appropriations Committee on the upcoming budget, DHH explained that most of the increase goes to “right-size the base budget” and “to compensate for utilization and cost increases.” Most of the increase is covered by a $653 million, or 12.5%, jump in federal funds from a temporary boost in the Medicaid match that ends after the 2012-13 fiscal year. However, Committee Chairman Jim Fannin, D-Jonesboro, pressed DHH Secretary Bruce Greenstein on how he would meet future obligations when federal funds drop back, saying, “I don’t see the growth in spending to keep up with the growth you have in the budget.” Greenstein focused on the budget at hand, pointing to a 1,500 reduction in employees through privatizing institutions and the transition to Bayou Health, the privately administered managed care plan. At some facilities, he said, switching to a private contractor has reduced costs by as much as 50%. Fannin, looking ahead, said the state has about run out of devices to balance budgets, such as $203 million in one-time funds swept from the balances of dedicated funds. “We’re not only sweeping, we’re vacuuming the corners of these funds,” he said. Rep. John Schroder, R-Covington, also chimed in, saying to Greenstein, “I think Peter is fixing to bankrupt Paul. I hope you know Houdini. This looks like a disaster ready to happen.” Meanwhile, in the Senate Finance Committee, a DHH official testified that the new Bayou Health managed care program would save $44 million over the current year.
—The Meals on Wheels program is so precious to some senior citizens that they split up the food to have a second hot meal at night, said a lawmaker concerned about the future of the program. In a meeting room filled with senior citizens and parish Council on Aging officials, Rep. James Armes, D-Leesville, pressed DHH officials about plans to transfer the Governor’s Office on Elderly Affairs to the health-care agency. “If this thing doesn’t work out, I’ll be the first one jumping up and down,” he said. Greenstein pledged to Appropriations Committee members that the current staff and services of Elderly Affairs would be maintained and expanded under DHH. Moving the social program to the health department would enable it to draw down federal matching funds, which, said Greenstein, would remain within the agency. Details of the transfer, which will require legislative approval, have yet to be spelled out because that bill has yet to be introduced. Lawmakers wanted assurances that the Elderly Affairs funds would be protected in future budget years. If not, said Rep. Joe Harrison, R-Napoleonville, to Greenstein, “I will hold you personally responsible.”
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