Musgrove vetoes Medicaid bills

By Staff
From staff and wire reports
April 10, 2002
JACKSON Gov. Ronnie Musgrove's veto of two Medicaid bills drew sharp criticism from legislative leaders Tuesday.
Musgrove said the measures leave the health coverage program in poor financial shape next budget year and his action means lawmakers will return to the Capitol Friday to consider overriding the vetoes.
Musgrove's action drew immediate criticism from Lt. Gov. Amy Tuck and House Speaker Tim Ford, who accused him of "conducting a campaign of fear regarding the state Medicaid program.
For his part, Musgrove said in a veto message that the "consequences for health care will be devastating if no adjustments in the (fiscal year) 2003 budget for Medicaid are made." He said he wants Medicaid Executive Director Rica Lewis-Payton to be given more flexibility to run the program as she sees fit.
Ford and Tuck said they expect the vetoes to be overridden.
Lawmakers have given Medicaid $120 million less than program leaders requested for the budget year that starts July 1.
Musgrove said if legislators gave him the assurance of full funding, the state will not have to cut optional offerings, including nursing home services and some prescription drugs.
If you will assure me by written, hand-delivered letter today that the needed funds will be provided to ensure that these cuts will not have to be made, then I will not veto the bills and nursing home and prescription benefits will not be cut,'' Musgrove told legislative leaders.
Lawmakers returned to their homes last Friday, but arranged to return at the end of this week if Musgrove shot down budget bills. The three-month legislative session is set to end Friday afternoon.
One of the bills Musgrove vetoed Tuesday was Medicaid's budget for the coming year. The other has cost-cutting measures.
For every dollar Mississippi puts into Medicaid, the federal government puts in $3. That means a $120 million shortfall in state funds translates to a loss of $480 million in health services.