Alaska Hit With Lawsuit Over Steps To Address Runaway Medicaid Costs

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In an effort to transform its financially troubled Medicaid program, the state of Alaska has implemented “emergency regulations” to cut Medicaid reimbursement rates and is working with a consulting company to make the state the first in the nation to receive a Medicaid block grant from the federal government.

The moves are meeting resistance. The Alaska State Hospital and Nursing Home Association sued the state on July 12, claiming the cuts are arbitrary and violate due process.

Meanwhile, the state is working with the Boston-based Public Consulting Group to evaluate whether a block-grant system would save the state money. The Department of Health and Human Services awarded the $100,000 contract to analyze the feasibility of implementing a block grant of federal funds for Medicaid payments that would add work requirements for Medicaid enrollees and move some recipients to private insurance.

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