Medicaid will Stop Provider Payments

In a letter to Medicaid providers, such as nursing homes, dated June 19, 2009, the Division of Medicaid announced that, due to the state's budget crisis, it was out of money and would cease all provider payments until it received funding.  The letter points to a $39 million shortfall in current budgeting.  Once providers notify Medicaid recipients that their coverage has been discontinued, I presume the plan is for public outcry to place pressure on the legislature to find a method to fund the program - presumably using the hospital tax that the governor wants, since the Division of Medicaid falls under the executive branch and no doubt sent the letter at his direction.