New Pa. budget challenge surfaces

HARRISBURG, Pa. (AP) – Another significant budget challenge might be facing Gov. Tom Corbett.


The Corbett administration wrote Tuesday to the director of the U.S. Centers for Medicare and Medicaid Services out of concern that Pennsylvania will lose about $325 million in federal Medicaid funding next year.


Administration officials are asking the federal agency to check on estimates that Pennsylvania’s Medicaid match will drop by 1.7 percentage points.


In a letter, Department of Public Welfare Secretary Beverly Mackereth calls that the biggest single decrease in federal Medicaid funding in decades and warns that the administration will be forced to consider cutting benefits and reimbursements to doctors and hospitals as a result.


A spokeswoman for the U.S. Centers for Medicare and Medicaid Services did not immediately respond to a request for comment Tuesday afternoon.

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