Louisiana may need to cut over $300 million from its health care budget, affecting programs for vulnerable children, seniors, and people with disabilities, according to officials from Gov. Jeff Landry’s administration.
Health Secretary Michael Harrington warned that if the state reduces its health care budget by $105.1 million, it could result in a total loss of $332.4 million due to decreased federal funding. This reduction is part of efforts to address the state’s budget deficit, which is compounded by planned tax reductions in mid-2025.
Harrington outlined potential cuts, including:
Pediatric Day Care Centers: $26.4 million for families with medically fragile children.
Behavioral Health Programs: $5.9 million reduction for children with behavioral issues.
Program for All-Inclusive Care for the Elderly PACE: $20.4 million cut, affecting seniors’ ability to live at home.
Senior and Disability Services: $9.1 million cut for daytime supervision.
Transportation for People with Disabilities: $1.8 million cut.
Medical Resident Funding: $23.1 million reduction.
These cuts would also lead to lower reimbursement rates for caregivers and reduced supplemental payments to hospitals for Medicaid patients, as well as a halt to planned increases for nursing homes.
Lawmakers from both parties have expressed strong opposition to these cuts. Some believe the health department should explore other areas of the nearly $20 billion budget for savings. Others argue that funds from recent Medicaid reductions and leftover state funding should help avoid these severe cuts.
The state faces a $587 million budget deficit, largely due to a planned reduction in the state sales tax. To address this, lawmakers might consider maintaining the current sales tax rate or exploring new tax options, such as taxing streaming services and business utilities. Moving funds from vehicle sales tax to health care and other services could also help close the gap.