Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ralph Giacobbe – Credit Suisse.
Ralph Giacobbe – Credit Suisse
Can you maybe help us a little bit more in terms of timing around visibility on the Medicare side if at all possible? You know when do you think we’ll get more info and maybe any update you’ve had on discussions either pre or post budget with sort of your people in Washington?
Richard K. Matros
We’ll get some visibility when the proposed rule comes out but I’m not even sure about the exact timing on that because there’s still a leadership void in CMS. So, that kind of remains to be seen. We’re not hearing anything new or actually anything specific out of Washington and I spent two days on the hill not that long ago with leadership from both the Senate and the House and frankly, we’re not even being talked about so that’s a good thing.
That said I think if they are going to be focused on a permanent position fix as I think I said to you all individually I think we’re all going to have to chip in to that. So, even though obviously we would put forth our argument against it I can see us taken some reduction in the market basket but I wouldn’t foresee it being anything draconian. So, that’s pretty much how I felt last year and nothing has really changed this year.
We’re continuing to hear mix signals on what, if anything, [Strive] is going to show but we are consistently hearing that it is going to be revenue neutral if in fact it even comes out so nothing negative there. I think that’s pretty much where it is at right now.
Ralph Giacobbe – Credit Suisse
Then any more maybe on the Medicaid side since you last gave guidance, I know it was only a month ago but any updated thoughts would be helpful if there are any.
Richard K. Matros
A little bit updated. When we forecast the 2% that was what we knew as of the day before we released guidance internally based on state budget deficits we could see things getting worse in certain states in the absence of any release from FMAP and one third of the states that we thought could get worse we’ve already heard from that FMAP is going to be helpful and things aren’t going to get any worse. That [inaudible] was just passed so that’s pretty quick feedback.
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