INDIANAPOLIS | The Indiana Family and Social Services Administration says $34 million in new budget cuts includes a 5 percent cut in its reimbursements to hospitals for serving patients on Medicaid.
FSSA announced the cuts Tuesday in response to state revenue shortfalls and growth in the state Medicaid rolls.
The agency says it will save more than $13 million by moving some offices and not filling vacant positions. The cuts in hospital reimbursements are expected to save more than $10 million.
FSSA Secretary Anne Murphy says the budget moves avoid reducing vital services to the 1.2 million Indiana residents to whom the agency provides benefits.