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Hospital chain bracing for Medicaid cuts

Banner Health is threatening to withhold pay raises next year because of state cuts to the Medicaid medical program for the poor.

The hospital chain says more than 28,000 of its workers in Arizona would be affected.

The Arizona Republic reports the scheduled cuts in Medicaid reimbursements for treatment will cost the hospital system more than $100 million next year.

Since 2008, Arizona hospitals have absorbed about $500 million in cuts and payment freezes from the Arizona Health Care Cost Containment System, the state’s Medicaid program.

AHCCCS provides health insurance for more than 1.3 million low-income and disabled Arizonans.

It is a major revenue source for hospital systems like Banner Health.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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