INDIANAPOLIS — State lawmakers likely will make cuts to Medicaid since it's now forecast to cost Indiana an additional $1.1 billion over the next two years — money the state doesn't have.
Indiana human services chief Michael Gargano gave the cost estimate Wednesday to the State Budget Committee. He's asking the Legislature for less — about $900 million in additional state Medicaid money. He says lawmakers can reduce costs by cutting some optional services such as prescription drugs, eyeglasses and dental work.
The federal government pays about two-thirds of Medicaid, but Gargano says Indiana's costs are growing by more than 10 percent a year because the recession has made more people eligible for government health care.
Budget committee chairman Luke Kenley says Indiana and other states need an alternative to Medicaid.
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