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FSSA Cites Shortfall, Medicaid Growth In $34 Million Cuts
Agency Announces First Round Of Budget Cuts
POSTED: 3:05 pm EST November 10, 2009
INDIANAPOLIS -- The Indiana Family and Social Services Administration said $34 million in new budget cuts include a 5 percent cut in its reimbursements to hospitals for serving patients on Medicaid.FSSA announced the cuts Tuesday in response to state revenue shortfalls and growth in the state Medicaid rolls.The agency said it will save more than $13 million by moving some offices and not filling vacant positions.
The cuts in hospital reimbursements are expected to save more than $10 million."The reductions we are announcing today cut spending without cutting vital services," said Secretary Anne Murphy. "Our commitment is to the 1.2 million Hoosiers that receive benefits from us, and the cuts announced today will not take away from our clients receiving the benefits to which they are entitled."The agency didn't rule out additional cuts.
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