June 9, 2015

The spinners for NCDHHS and Medicaid contractors like CCNC have been saying the Medicaid budget is stable. Relax.

Only now it appears NCDHHS has been sweeping problems under the rug instead of cleaning the room. The News and Observer reports ”The state Medicaid office owes medical providers nearly two years worth of back payments for poor, elderly patients, an expense that will increase past and future costs, according to the state budget office.

The need to catch up with nearly two years worth of Medicaid expenses runs counter to the state Health and Human Services department’s narrative that it has cleaned up longstanding problems in Medicaid.” (Raleigh News & Observer)

In short, NCDHHS isn’t current on the bills. And now it’s time for the bureaucrats to fess up and present Legislators with the unpaid balance on the credit card.

Call it a June surprise.

And these Medicaid surprises are a tired old song with NCDHHS.

Between 2009-2012,under Democrat and Republican budgets, Medicaid overspent the budget by $5 billion according to the State Auditor. (WRAL)

In 2013,NCDHHS claimed a $63 million surplus. But the State Auditor uncovered $350 million in debts owed. (NC Policy Watch)

And now the $68 million in black ink NCDHHS has been forecasting this year is beginning to turn red with the newest June surprise in Medicaid.

Our state revenues are on track. But Medicaid keeps blowing up. So much for stability.

It’s time to fix Medicaid. Now, not in the sweet by and by