Medicaid program deficit pegged at $308M BATON ROUGE, LA (AP) (wrkf) - The state health department has pegged a midyear deficit in Louisiana's Medicaid program at $308 million.

Health and Hospitals Secretary Alan Levine gave formal notification of the problem to lawmakers Monday.

The shortfall for the $6.5 billion program that cares for the poor, elderly and disabled will have to be closed before the 2009-10 fiscal year ends on June 30.

Levine is proposing shifting dollars from public health and mental health programs, along with tapping some federal stimulus funds and other available one-time dollars to help fill the gap. Lawmakers on the Legislature's joint budget committee will discuss the deficit Tuesday.

Levine blamed the deficit on swine flu cases, a recession that has pushed new people onto Medicaid rolls and delays in planned cost-cutting moves that decreased expected savings. © Copyright 2009, wrkf