The leader of the Mississippi Hospital Association says it appears the Division of Medicaid will cease to exist after June 30.
President and CEO Sam Cameron said that's what will happen because Gov. Haley Barbour refuses to call a special session of the legislature to finalize the state budget.
In a written statement, Cameron said "while most legal experts agree the governor can run the agency without reenactment of the Division, they also agree the legislature cannot appropriate funds to an agency that does not exist."
Cameron said any payments to Medicaid staff or vendors after July 1 would be considered illegal gratuities, leaving the governor with no staff to run the program.
The MHA president said many hospitals and other health care providers have already informed their vendors they will not be paid until the providers are reimbursed by the Division of Medicaid.