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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Month: January 2012

State Medicaid Programs

  • State Medicaid programs face $141 million shortfall, report says, By Jason Stein, January 31, 2012, Milwaukee Journal Sentinel: “Wisconsin’s health programs for the poor have a $141 million shortfall in state money over the next year and a half, new estimates show. So far, GOP Gov. Scott Walker’s administration has saving plans that would more that cover that potential deficit in the state’s Medicaid health programs. But a new report by the Legislature’s nonpartisan budget office questions whether all of the saving will materialize. With costs in the program still substantial and the saving uncertain, the Legislative Fiscal Bureau found in its new report that the finances of the health programs will need careful monitoring. The report comes ahead of new estimates expected next week that should shed more light on the overall condition of the state’s strained budget…”
  • Medicaid rolls rose even as Pa. disqualified many, new calculation shows, By Don Sapatkin, January 26, 2012, Philadelphia Inquirer: “The Pennsylvania Department of Public Welfare’s stepped-up efforts over the summer to target waste, fraud, and abuse quickly bore fruit in the fall. Adult Medicaid enrollment alone was down 109,000 through November. Cause and effect seemed clear. Advocates for the poor and disabled were outraged. Now, DPW has suddenly changed its reporting method. Revised calculations show a decline of just 6,000 participants for the same period. And when December is added in, enrollment is up by 23,000 since August – a time when officials agree that tens of thousands of people lost benefits after overdue reviews found they were ineligible. DPW says the new reporting method is just as accurate as the old one, merely different. But it will not disclose its new method or recalculate the latest Medicaid data using the old formula…”
  • Medicaid copays could increase in South Dakota, By Megan Luther, January 31, 2012, Sioux Falls Argus Leader: “Medicaid recipients in South Dakota will face larger copays for their medication if the federal government signs off on a state plan designed to drive down costs in the program that provides health care to poor people. Requiring the larger copays is one of 11 recommendations put forth by the Medicaid Solutions Work Group, an assembly of health care providers, lawmakers and state employees assigned with finding savings the the program. The group began work last year at the request of Gov. Dennis Daugaard…”
  • Medicaid change to cut pharmacy payments in Texas, By Jim Fuquay, January 28, 2012, Fort Worth Star-Telegram: “When Marwan Hattab opened Wedgwood Pharmacy just over a year ago, he knew from his previous years in the business how much it costs to fill a prescription. And he knows it’s quite a bit more than he’ll be paid under a new reimbursement system for Texas’ Medicaid program. The state’s move to managed care for Medicaid prescriptions goes into effect March 1, and Hattab and other independent pharmacists say they stand to lose money on every prescription they write for the federal/state healthcare program for the poor. A coalition of Texas pharmacies said last week that the dispensing fee that pharmacists receive for filing a Texas Medicaid prescription will plunge from about $6.50 to as little as $1.35. The change is part of legislation passed last year that aims to save the state an estimated $100 million over the next two years…”

Asset-Poor Households in the US

Number of asset-poor Americans rising, By Becky Yerak, January 31, 2012, Chicago Tribune: “Luz Pagan, 45, has been working as a part-time cashier at a discount store in downtown Chicago for nearly three years, her requests to become a full-time employee with benefits having gone nowhere. The single mom and her 12-year-old son, Marvin, have been living in a $575-a-month studio apartment on the North Side since November. But with a work schedule averaging 15 to 20 hours a week, in a job paying about $8.75 an hour, Pagan is struggling to cover living expenses and has to scrape together money from friends and family. Her last paycheck netted $64. ‘I’m underemployed,’ said Pagan, who previously lived in a shelter for two months. She has an associate’s degree and would love an office job. Marvin’s dad helps with expenses, but she said she and her son – a mostly A and B student who wants to be a doctor – are living paycheck to paycheck, with no savings. Pagan’s plight is becoming more commonplace. Nationwide, 27 percent of households are ‘asset poor,’ meaning they don’t have enough money tucked away to cover basic expenses for three months in case of a layoff or other emergency that saps income, according to a study to be released Tuesday by the Washington-based Corporation for Enterprise Development…”

State Minimum Wage – New York

With focus on income inequality, Albany bill will seek $8.50 minimum wage, By John Eligon, January 29, 2012, New York Times: “The Occupy Wall Street encampment at Zuccotti Park is no more, but the focus it brought to income inequality is having an impact in Albany and beyond. The Assembly speaker, Sheldon Silver, a Manhattan Democrat, plans to introduce a bill on Monday to raise the state’s minimum wage to $8.50 an hour, a 17 percent increase. The bill also calls for the minimum wage to be adjusted each year for inflation. Mr. Silver’s action follows similar steps by lawmakers across the country: Delaware recently passed a minimum wage increase, and raises are being considered in California, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Missouri and New Jersey…”