Congress continues to debate over the inclusion or exclusion of federal Medicaid dollars to states.

Twenty-eight states, including Washington, crafted budgets for FY10 assuming Congress would approve additonal Medicaid dollars.

Governors, including Washington’s Governor Gregoire,  from across the country lobbied Congress hard this week with an eye to the July 1 state budget deadline. The Medicaid extension is set to expire at the end of 2010, halfway through the fiscal year that begins in most states on July 1. 

The extension was first included in the 2009 economic stimulus bill. Since then the extension has faced a rocky road. Both chambers of Congress have passed different variations of the request and President Obama has called the aid necessary to avoid massive layoffs.

Despite this support, the extension and the dollars it would bring to states cotninues to be attached to congressional bills that die for one reason or another.

As Congress continues to move forward without securing the extension and funding, states are moving forward and beginning to consider their next steps. At question is how quickly cuts would have to be made if Mediciad dollars are not included in legislation passed by Congress.

For Washington the lack of additional federal Medicaid dollars would result in a reduction of $480 million to the state budget. If the dollars do not come through Washington’s budget reserves could be eliminated and the state would face an additional $200 million in budget cuts.

The Governor could make these cuts across-the-board or call the Legislature in for a special session.

Stay tune!