The Department of Community Health plans to cut $113 million from Medicaid and PeachCare.
Medicaid is a health program for the poor and disabled while PeachCare insures children of the working poor.
Georgia had plans to increase the money it gives to health care providers who treat these patients.
This will now be postponed until July 2010 due to budget cuts.
Jeff Sherman, the Director of Patient Financial Services at South Georgia Medical Center says, "Unfortunately, the providers were looking forward to an increase in reimbursement because we already provide services to this population below our actual cost."
Officials say Medicaid and PeachCare recipients will see no changes to their eligibility or the treatment they receive.