Rather than spike taxes, Gov. Mike Beebe said Tuesday that the looming $400 million Medicaid deficit could mean cuts to services, according to Arkansas News.
Even with the introduction of a $1.2 billion settlement payment into the program’s trust fund by Johnson & Johnson in light of a fraud case, Arkansas Medicaid will still face a $250 to $400 million hole on July 1, 2013, the first day of its fiscal year.
“We’re not counting on that. We don’t know when or if it’ll ever come to fruition, and even if it came to fruition its one-time money and it would just be a stop-gap,” Beebe said.
State workers attempting to restructure the Medicaid plan will only slow the growing shortfall, not prevent it completely, he added.