Medicaid cuts hurting local service providers

Local service providers are scrambling to find ways to make ends meet after Medicaid reimbursements were cut in the state budget.

"We've had to decrease some of our employees," said Cole Caruso, director of operations at Florida Habilitation Network. "We've had to reduce their pay. We've had no other choice. Other providers in the area are having to discontinue services."

Melanie Etters, communications director for Florida Agency for Persons with Disabilities, said the new budget that went into effect on July 1 cut most reimbursement rates by 7 percent. She said that the waiver support coordination and residential habilitation underwent 3 percent cuts last year, so they did not have the full 7 percent slashed.

"Virtually all of the state agencies have some reduction because of the poor economy right now," Etters said.

Marsha Vollmar, area administrator for the Agency for Persons with Disabilities in Southwest Florida, said providers are just now finding out about the cuts. The agency provides services to about 1200 people in Lee, Glades, Hendry, Collier and Charlotte Counties.

"I'm sure that there will be an impact on the providers," she said. "I'm sure they're trying to find ways to economize, to do what they can to support individuals in the community who depend on their services."

Throughout the state, the agency provides 28 Medicaid waiver services. Florida Habilitation provides personal care assistance and respite care. Employees are paid hourly and do not necessarily work a full 40 hours. Caruso said a pay cap is also being implemented.

At Good Wheels, president and chief executive officer Gary Bryant is hoping that work in the private sector is enough to offset the cuts his company is undergoing in reimbursement.

"It's going to be a tough year," said Bryant, who provides transportation services. "It's going to be a very hard year. We're just going to have to work a lot harder in generating additional private enterprise revenue. We really do need help from the state legislature, though. You can just only do more for less for so long and then you can't do any more. They have to decide, more funding or less service."