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• State wrestles with Medicaid costs

A proposed federal jobs bill could help Wisconsin get rid of a big shortfall in its Medicaid health programs for the poor and elderly.

U.S. Rep. Tammy Baldwin, Madison, said the bill passed by the House Wednesday night could give the state up to $490 million for Medicaid in 2011 and 2012.

Wisconsin Health Services Secretary Karen Timberlake said her agency cannot sit back and wait for federal help, but it's reasonable to believe that some help is on the way.

The Senate will take up the jobs bill early next year.

Meanwhile, state legislators grumbled Thursday when Timberlake explained her department's plan to cut over $600 million from Medicaid to help alleviate a shortfall which could hit $1 billion by the middle of 2011.

Joint Finance co-chairman Mark Pocan said he was concerned that a third of the cuts were achieved by pushing off payments until the next budget period.

Sen. Dave Hansen, D-Green Bay took issue with cutting special Medicaid reimbursements to 59 rural hospitals.

Assemblyman Phil Montgomery, R-Ashwaubenon, said hospitals will make folks with private insurance pay more to make up for the reductions.

Sen. Alberta Darling, R-River Hills, said Medicaid is unsustainable and "It's killing our economy."