Medicaid Faces Tough Economy

Frankfort, KY – Kentucky officials say the bad economy is burdening state Medicaid as record numbers of people sign up for the health program. About three thousand people a month are signing up for Kentucky Medicaid, creating another crisis for a state already struggling with a projected $456 million revenue shortfall. Medicaid Commissioner Elizabeth Johnson says the federal government provides 70 percent of Medicaid funds but the state already was facing a projected 183-million-dollar Medicaid deficit this year. Johnson told The Courier-Journal that many other states also are struggling with similar Medicaid shortfalls. The health plan covers elderly in nursing homes, health care for adults with disabilities and nearly half of all births in Kentucky.