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MEDICAID - THE REAL MONEY PROBLEM <br /> • Both the House and Senate reconciliation bills would reduce <br /> growth in Federal Medicaid monies to North Carolina to <br /> under four percent within four years; <br /> • Since 1988, growth in Medicaid has averaged 23 percent <br /> each year - including the period between October 1, 1994 <br /> and October 1, 1995; <br /> • DHR has released losses in aid from current service levels of <br /> $2.5 billion between now and October 1, 2000 under the <br /> House bill and $1.11 billion under the Senate bill. These <br /> losses are based on an estimate that Medicaid will only grow <br /> by percent in North Carolina -- an estimate which seems <br /> very low; <br /> • A crisis in Medicaid could be imminent -- the House bill <br /> would only permit Medicaid growth of 15 percent for the <br /> period between October 1, 1994 and October 1, 1996 (NC <br /> Medicaid has grown by 23 percent in half of that time <br /> period); <br /> • Similarly, it may be that the Senate bill does not include <br /> approximately $275 million in payments for <br /> disproportionate share hospitals in the 1995 base. As such, <br /> North Carolina's Medicaid reimbursement would be limited <br /> to approximately 1 percent growth between FFY 1995 and <br /> FFY 1996; <br /> NC Budget&Tax Center <br /> 11/8/95 <br />