County Commissioners call Lipman on carpet over funding shortfall

LACONIA — Belknap County is facing a $2.1 million reduction in federal funding for its nursing home as the result of a change in regulations county officials were not aware of when they wrote the 2020 budget.

County commissioners sharply questioned state Medicaid Director Henry Lipman Thursday night about why he didn’t tell them sooner the county would be getting only half as much as expected in so-called “Pro-Share” funding.

The regulatory change was made in November and the county budget was approved in February, Commission Chairman Dave DeVoy said in an interview Friday.

“It is very frustrating,” DeVoy said. “Somebody had read that change in November. Maybe they didn’t fully understand it. It would have been very helpful if we would have been notified sooner. We wouldn't have this shortfall.”

He said the county should have about $5 million in reserve funds at the end of the year, so the shortfall can be covered in the short term, but such a reduction could present budgeting problems in subsequent years.

At the meeting, Commissioner Glen Waring reminded Lipman that he appeared before them in a meeting before the budget was approved.

“Here we sit today and now you tell us that in November you were aware of a change, but we weren’t notified until March and we are left with a $2 million hole on the revenue side of our budget. That needs to be explained,” Waring said.

Lipman said the reduction in money that would be available to the county was not apparent when he spoke to commissioners previously. He said discussions were held with officials with the Centers for Medicare and Medicaid Services in January and February about the new regulations.

“The fact that the financing regulations behind this changed was not something that we had knowledge of when we met with you previously,” said Lipman, who is also on the Laconia City Council. “Look, it is an impact. I’m not trying to avoid talking to you about it.

“I’m chair of the finance committee in Laconia. I understand what this means to all the taxpayers in the county.”