A $100 million reduction in increased funding for the Louisiana Department of Health could result in cuts for nursing homes, pediatric services, psychiatric beds and other Medicaid services, officials told lawmakers on Tuesday.
The Senate Health and Welfare Committee heard from LDH officials and others on Tuesday about the potential impact of the last-minute budget reduction Chairman Sen. Fred Mills, R-New Iberia, described as "a major, major surprise."
The $100 million reduction to the LDH budget increase Gov. John Bel Edwards requested came on the final day of the legislative session as part of negotiations between chamber leaders. Edwards can veto the reduction but would have to reduce spending elsewhere to balance the budget.
Health Secretary Stephen Russo told lawmakers the reduction could result in as much as $700 million in lost funding when federal matching funds are considered, depending on which services the department would reduce.