INDIANAPOLIS — State lawmakers likely will make cuts to Medicaid since it's 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 General Assembly for less — about $900 million in additional state Medicaid money. He said 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 said Indiana's costs are growing by more than 10 percent per year because the recession has made more people eligible for government health care.
Budget committee chairman Luke Kenley said Indiana and other states need an alternative to Medicaid.
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