At least two Pennsylvania lawmakers are hoping that a pending state budget deficit and a bleak economy do not result in spending cuts in the state's $14.8 billion Medicaid program, a possibility being discussed in Harrisburg.

"It would be one of the worst areas you can cut funds from,'' said state Rep. Chelsa Wagner, D-Brookline.

"It is still vague on what will happen and too soon to say there will be cuts, but it looks to me they're trying to save money through the providers," said state Sen. Wayne Fontana, D-Brookline.

Medicaid, also referred to as medical assistance, is a jointly funded state-federal program of the state Department of Public Welfare that pays for health care services for about 1.9 million low-income residents in Pennsylvania.

Depending upon a person's eligibility, covered services may include: doctor and clinic visits; hospital care; home health care; medical supplies and equipment; nursing facilities; prescription drugs and dental services. Roughly one-third of all Medicaid recipients in Pennsylvania are elderly or disabled.

But as the state's second-largest budget expenditure at $5.5 billion and with a potential state budget deficit of $1 billion to $3 billion in 2009, cuts in Medicaid are possible, said Barb Fellencer, spokeswoman for a legislative budget committee.

No local nursing home officials contacted by South would comment on the issue.

In Allegheny County, 180,296 people are eligible for Medicaid, or 14.8 percent of the county population.

"The department has no bad programs. There really aren't major areas that are not worthy," she said.

Under the Department of Public Welfare's 2008-09 operating budget of $23.7 billion, the largest expenditure is Medicaid at 45.1 percent followed by long-term living care at 19.2 percent.

The other programs are developmental programs at 10.6 percent; income maintenance, or welfare, at 8 percent, with most of that going to children; Children, Youth & Families at 7 percent; mental health at 4.5 percent; child development and early learning at 4.2 percent; and administration at 1.4 percent.

Based on what he has heard, Mr. Fontana is cautiously optimistic the programs are safe.

"What I am getting is that ... they are also ... looking at anything they can save administratively, such as through travel and hiring," he said.