New Hampshire Medicaid Cuts Prompt Lawsuit by Hospitals

Ten New Hampshire hospitals are suing the state over cuts in Medicaid reimbursements the medical centers say threaten low-income residents’ access to care, Bloomberg BusinessWeek and New Hampshire Public Radio report.

The hospitals told a federal court that the state made deep cuts in repayments solely for budgetary reasons, without regard to what the hospitals needed to treat Medicaid patients.

The New Hampshire budget that took effect July 1 lowers Medicaid payments and does not include a past provision to reimburse hospitals for a state tax on patient revenues, using federal funds. Hospitals say the measure will cost them $250-million over two years, prompting facilities to lay off hundreds of employees and reduce or eliminate some services.

State lawmakers, who passed the cut over the objections of the governor, said they had no comment because they had not yet reviewed the lawsuit.

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