Navigation Links
Providence Service Corporation Comments on $87 Billion Medicaid Assistance for States in the American Recovery and Reinvestment Act Signed into Law Yesterday

TUCSON, Ariz., Feb. 18 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today commented on the Medicaid assistance for states in the American Recovery and Reinvestment Act, which was signed by President Obama yesterday. The American Recovery and Reinvestment Act includes an $87 billion temporary increase in the share of Medicaid that the federal government would pay over nine calendar quarters (October 1, 2008, through December 31, 2010).

"The Medicaid stimulus package is a significant piece of legislation, providing unprecedented levels of fiscal support for our state government payers to serve today's growing Medicaid population," said Fletcher McCusker, CEO. "While we expect this to translate to added funding for many of the services we provide, the retroactive date is not expected to impact our 2008 results, and the overall timing and implementation of the program still remains somewhat uncertain."

The Economic Recovery legislation contains three provisions relating to increased Medicaid funding for states. First, it would suspend through fiscal year 2011 the reductions that some states would otherwise experience in the percentage of their Medicaid costs paid by the federal government, known as the state's FMAP. This would prevent states from losing federal funding simply because economic conditions in the states were much stronger several years ago. Secondly, all states would receive a "base" 6.2 percentage point increase in their FMAP rate. Finally, states experiencing poor economic conditions as indicated by a significant rise in unemployment would receive additional assistance. Depending on the extent of the state's rise in unemployment, a state could receive a 5.5 percent, 8.5 percent, or 11.5 percent reduction in the share of Medicaid costs the state pays. To receive any increased FMAP, however, a state's Medicaid eligibility levels must not be more restrictive than they were on July 1, 2008. States that have restricted eligibility would be allowed to reverse their actions and qualify for an increased FMAP in the first calendar quarter in which they have restored their Medicaid eligibility.

An analysis of the American Recovery and Reinvestment Act was issued by The Center on Budget and Policy Priorities on February 13, 2009, and can be found on their website at The Center on Budget and Policy Priorities is one of the nation's premier policy organizations working at the federal and state levels on fiscal policy and public programs that affect low- and moderate-income families and individuals.

Based on estimates and projections of future economic conditions by the Government Accountability Office (GAO), the amount of assistance each state would potentially receive under the new legislation ranges from $11.2 billion for California, to approximately $2.0 to $4.0 billion for smaller states like Arizona, Pennsylvania and North Carolina, which are key states for the Company. The GAO notes that their projections are admittedly highly uncertain. These figures are also referenced in the Center on Budget and Policy Priorities' report.

About Providence

Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 74,000 clients through 870 contracts at September 30, 2008, with an estimated six million individuals eligible to receive the Company's non-emergency transportation services related to its LogistiCare operations. Combined, the Company has a nearly $1 billion book of business including managed entities.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Forward-looking statements contained in this release may relate to, but are not limited to, statements regarding Providence's review of potential strategic options, the timing of such review, and the outcome of such review. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, uncertainties as to the timing and amount of any stimulus package capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.

    5524 E. Fourth Street
    Tucson, Arizona 85711
    Tel 520/747-6600
    Fax 520/747-6605

SOURCE Providence Service Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Providence Service Corporation Comments on Consent Solicitation by Avalon Correctional Services, Inc.
2. Providence Service Corporation Comments on Section 220 Demands Received From Avalon Correctional Services, Inc.
3. Providence Service Corporation Provides The Center on Budget and Policy Priorities Preliminary Analysis of Potential Medicaid Assistance for States in the House Economic Recovery Package
4. Providence Service Corporation Provides Update on Potential Medicaid
5. Providence Service Corporation Adopts Shareholder Rights Plan
6. Providence Service Corporation Retains UBS Investment Bank as its Financial Advisor in Connection With the Sale of Certain Non-Strategic Assets
7. Craig A. Norris Appointed to Providence Service Corporation Board of Directors
8. State of New Jersey Announces Intent to Award $50 Million Annual Transportation Contract to Providences LogistiCare Subsidiary
9. Providence Service Corporation Releases Third Quarter Results
10. Providence Service Corporation Releases Second Quarter Results
11. Providence Service Corporation Sees Budget Clarity Improving Toward Year End With Budget Issues Impacting Second Quarter and Balance of 2008
Post Your Comments:
(Date:11/28/2015)... PITTSBURGH, PA (PRWEB) , ... November 28, 2015 , ... ... to the creativity of two inventors, one from Lakewood, New Jersey and the other ... They developed the patent-pending PROTECTOR to save the expense of having to replace NuvaRings ...
(Date:11/28/2015)... CA (PRWEB) , ... November 28, 2015 , ... Pixel ... fully customizable media panels to choose from, the possibilities are endless. Users have full ... more. With the ProPanel: Pulse masking effects, users are sure to get heads to ...
(Date:11/27/2015)... ... November 27, 2015 , ... According to an article ... University of Toronto and the University of British Columbia suggested that laws requiring bicyclists ... The article explains that part of the reason for the controversial conclusion is that, ...
(Date:11/27/2015)... , ... November 27, 2015 , ... A team of ... ways to treat it. Surviving Mesothelioma has just posted the findings on the website. ... Hospital Zurich analyzed the cases of 136 mesothelioma patients who were treated with chemotherapy ...
(Date:11/27/2015)... ... November 27, 2015 , ... Lizzie’s Lice Pickers just announced ... offering customers 10% off of their purchase of lice treatment product. In addition, customers ... According to a company spokesperson. “Finding lice is a sure way to ruin the ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... , November 26, 2015 ... Juntendo universitetssjukhus ser potential att använda ... magnetresonansbilder (MR-bilder) för patienter med multipel ... ett forskningsavtal med SyntheticMR AB för att ... forskningsprojekt på sjukhuset. Med SyMRI kan man ...
(Date:11/26/2015)... 26, 2015 ) ... Administration of High Viscosity Drugs" report to ... announced the addition of the "Self Administration ... offering. --> Research and Markets ( ... "Self Administration of High Viscosity Drugs" ...
(Date:11/25/2015)... DUBLIN , Nov. 25, 2015 /PRNewswire/ ... announced the addition of the "Global ... to their offering. --> ... "Global Brain Monitoring Devices Market 2015-2019" ... Research and Markets ( ) ...
Breaking Medicine Technology: