Governor’s initial budget cuts

Yesterday the administration announced an initial list of $170 million in cuts to address the growing state budget deficit. The cuts include AIDS services, breast & cervical cancer detection and treatment, home care, Healthy Start, and DSH payments to hospitals. The cuts also include $1.5 million from HUSKY B, but expenses were down significantly in that program last year. As predicted, the switch from capitated HMOs to the ASO model may be responsible for those savings.