Max Baucus: “Unfortunately, we are in a recession, and the data we have is based upon times when the economy was in better shape, a…”

“Unfortunately, we are in a recession, and the data we have is based upon times when the economy was in better shape, a couple of years ago. As a consequence, the formula for distributing Medicaid payments from Uncle Sam to the States is based upon old data, and now the hospitals are hurting, more people have less income, they cross the Medicaid poverty index, they get lower payments--just the opposite of what they should receive. As a consequence, what the leader suggested is essentially about a $5 billion reimbursement to the States that have lost revenue as a consequence of the downturn.”