Thursday, August 28, 2008

ATLANTA (AP) - Medicaid and Peach Care providers will not see a rate increase this year under a budget plan being considered by Georgia's Department of Community Health.

The agency's board on Thursday was weighing a plan that would slash 5 percent from the state's Medicaid budget and cut between 6 and 10 percent from the rest of the agency's spending.

For the current fiscal year there were no plans to cut services or restrict eligibility for Medicaid or PeachCare, Georgia's health insurance program for children of the working poor.

But if state revenues continue to lag that could be on the table for the next fiscal year, set to start July 1, 2009.

With tax collections slowing, Georgia Gov. Sonny Perdue has ordered state agencies to cut spending.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)