Report: Feds Mull Cuts Due To Medicaid Backlogs

States are working through hundreds of thousands of backlogged applications due to Obamacare’s Medicaid expansion, but the administration is threatening to cut funding for dealing with them.

A massive influx of Medicaid applications has been further complicated by technological snafus between HealthCare.gov and incompatible state technologies, creating backlogs across the country. According to a report from Washington, D.C. think tank the American Action Forum, outgoing Health and Human Services Sec. Kathleen Sebelius is proposing a solution that will make the problem worse.

During a recent Senate Finance Committee hearing, Sebelius suggested that the Centers for Medicare and Medicaid Services (CMS) would temporarily cut federal funding for Medicaid administrative tasks to states that are struggling with a backlog. Sebelius theorized that looming cuts would incentivize states to get their backlogs under control as soon as possible.

Cutting administrative funding to states already struggling with insufficient administrative infrastructure would appear to make the problem worse, according to American Action Forum health care policy analyst Angela Boothe.