Budget committee approves cutting Alabama Medicaid by $156 million

The chairman of the Alabama House budget committee proposed a dramatic $156 million cut in funding for the state Medicaid program today after his plan to level-fund it and other key agencies unraveled.

Rep. Steve Clouse, R-Ozark, proposed the Medicaid cuts after the budget committee rejected a cigarette tax increase that was critical to the level-funding plan.

The usually low-key Clouse, animated and clearly frustrated, said he did not support cuts to Medicaid and considers it the foundation of health care in the state.

"But evidently there's a lot of legislators that still question Medicaid," Clouse said. "There's a lot of citizens around this state that are still questioning Medicaid and what it does. And we've got a decision to make in this state.

"Are we going to be the first state in the United States of America that finally says, 'We're going to do away with the Medicaid system?

"I don't know, we may make that decision as a citizenry. And it's time that we had that debate."

The Ways and Means General Fund Committee, which Clouse chairs, approved his amended budget with the Medicaid cuts. It moves to the full House, which can consider it on Wednesday.

It would cut the General Fund appropriation for Medicaid from $685 million to $529 million, a 23 percent reduction.

State Health Officer Don Williamson said the cuts would be compounded because state dollars are used to draw down federal money.

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