About Medicare & Medicaid Problems in Louisiana

The faltering economy hit many areas of society hard, and in 2010 it affected funding for important social programs, including Medicare and Medicaid. Funding of the program has been cut on the federal and state levels in Louisiana, and many physicians are reported to be pulling out of the program because of it.

Reimbursement Cuts

• The federal government is cutting reimbursements by 25 percent to Louisiana physicians who see Medicare patients. Louisiana also is cutting reimbursements to primary care physicians, home health providers, hospitals and others.

State Funding Shortfall

• The state's share of Medicaid funding was expected to be cut in 2011 by the federal government after its per capita income rose, which was due to rebuilding efforts after Hurricane Katrina.

Physicians Limit Patients

• Physicians were planning to limit the number of Medicare and Medicaid patients that they see as a result of the reimbursement cuts in September 2010, according to a survey conducted by the Louisiana State Medical Society.

Increased Demand

• Part of the cause of the shortfall is the increase in enrollment in Medicaid. According to the Louisiana Department of Health and Hospitals, Medicaid enrollment increased 4.4 percent in 2010.

Proposed Fixes

• The state plans to deal with its funding shortfalls by cutting reimbursements and limiting the number of prescriptions covered to four per Medicaid plan participant.

Louisiana Purchase

• In the 2010 federal health care bill, passed in March 2010, $300 million was allocated to Louisiana to cover its Medicaid funding gap.