Landry budget grows Medicaid
Body
Gov.
Shortly after Trump announced the creation of DOGE last year, Landry followed with his own government efficiency task force, which is officially called the Fiscal Responsibility Program but which the governor's office has started to refer to as "La. DOGE" recently.
Yet for all of the talk about cost-cutting, Landry's own budget proposal includes one major increase in spending that could overtake the savings measures he has floated.
Medicaid provides government-backed health insurance to low-income families, pregnant people, seniors in nursing homes and those with disabilities. In
A billion-dollar-plus increase in health care spending isn't unheard of in
As a conservative, Landry was expected to take a more skeptical approach to public health care spending when he came into office last year, especially compared with his predecessor, Democrat
Yet Landry's
The only larger jump in state health care funding recently took place in 2021, when the federal government plowed money into
The Landry administration attributes much of his proposed health care increase to costs it can't control.
The six private health insurance companies that run most of
Former health secretary
For example, lawmakers and voters approved a state constitutional amendment 11 years ago that requires nursing homes, whose owners are large political donors, to receive a Medicaid rate increase at least every other year, even when their services don't change. In Landry's latest budget proposal, this provision has resulted in an additional
"This is no simple bullet that is going to fix this for
Even with a
"They seem like they have gotten a handle on things a little bit better,"
But Landry has also made choices that increased Medicaid spending by hundreds of millions of dollars annually.
At the urging of state lawmakers, the governor's latest budget proposal includes an extra
Harrington and Louisiana Surgeon General
The governor also unilaterally raised Medicaid reimbursement rates by
The governor's team has also asked the federal government for permission to raise another physician payment that would allow more doctors to charge closer to a commercial insurance rate for seeing Medicaid patients.
This second round of extra physician spending hasn't been factored into the state budget yet. But if the proposal gains approval, it could add hundreds of millions of more federal dollars to Landry's existing Medicaid spending.
Overall,
For years, money coming from
The
By comparison, the total amount of federal and state money Landry intends to spend on higher education, state police, the
Without the federal money, state officials would have to look at cutting optional Medicaid services, including those for people with disabilities, or lowering the reimbursement rates for physicians Landy is currently trying to raise, among other measures.
"I think states should be very worried about a cost shift from the federal government," said
"If the federal government cuts Medicaid and cuts Medicaid significantly as they are considering, states are going to be ones that have to make the decisions about what services are going to be cut, what provider services are going to be cut," she said in an interview.
The Louisiana Illuminator is an independent, nonprofit, nonpartisan news organization.


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