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Key Questions to Consider in Implementing Medicaid Managed Care in New Hampshire

September 21, 2011 Health Policy, Research, State Budget
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New Hampshire’s legislature approved changes to the state’s Medicaid program that require the development of a managed care system. This holds promise for reducing costs and even improving care, but New Hampshire’s previous experiences with managed care and those of other states suggest this may not be easy. Potential savings may be modest and take time to materialize. This Issue Brief identifies some of the pitfalls New Hampshire may face when it comes to implementing a risk-based managed care system for Medicaid patients.

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Tobacco Tax Cut Likely to Lose Millions in Revenue, Leave FY12-13 Budget Out of Balance

NH state quarters

House and Senate lawmakers agreed to reduce the state’s cigarette tax by 10 cents per pack and lower taxes on other tobacco products as part of the two-year budget starting July 1. Based on the latest data available from state revenue officials, this is likely to reduce tax revenue by at least $14 million to $30 million. It now appears that budget negotiators failed to account for any such revenue loss, meaning that the budget for the coming biennium will likely end up out of balance.

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The Senate’s FY 2012-2013 Budget Proposal

June 6, 2011 State Budget
NH flag

For the most part, the Senate followed the path laid by the House in its version of the budget, imposing substantial spending reductions across a wide array of vital public services. In broad terms, the budget supported by the Senate would lower General and Education Fund expenditures roughly $240 million or approximately 5 percent. Like the House, the Senate would cut payments for uncompensated care, reduce local aid and curtail support for higher education.

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Unsettled Business Tax Revenues Push Surplus Upward, Offer Limited Insight for the Future

7 Dec 2018

tree with coins

The fortunes of State revenues continue to rise and fall with New Hampshire’s two primary business taxes, which provided positive signs for near-term revenue but have not shown these levels are sustainable. While the two business taxes remained healthy, other revenue sources were relatively flat overall, leaving the State with a revenue surplus entirely dependent on the two business taxes. The lack of growth in other revenue sources combined with the uncertainty around business taxes creates an environment in which it will be very difficult to accurately project revenues for the new State Budget biennium.