Governors Agree Medicaid Is Sapping States' Resources

[CAL/AAEM News Service]

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Submitted to Cal/AAEM News Service by Dr. Durkin

 

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http://online.wsj.com/article_email/0,,SB1045965009654159463,00.html

 

2/23/03

 

Governors Agree Medicaid Is Sapping States' Resources
State Leaders Are Seeking Solutions To Crisis, but Partisan Conflicts Loom
Associated Press


WASHINGTON -- Governors say the national program that guarantees health care for the poor bears much of the blame for states' financial woes, but they disagreed over whether President Bush's proposed changes will help the situation or make it worse.

In Washington for their annual winter meeting, members of the National Governors Association are hoping to present a united front on transportation needs, homeland-security funding, Medicaid and more. But partisan politics threatened their goal.

Democrats charged that the Bush administration was trying to squelch an open dialogue. On Monday, governors were to visit the White House to meet with Mr. Bush and administration officials on policy issues. Several Democrats, however, said the White House planned to allow each governor only two questions, which needed to be approved before the meeting. White House officials promised a wide-ranging exchange.

"The White House should not try to control what the nation's governors should do and say," said Democrat Bill Richardson of New Mexico.

Republicans complained, however, that the association's leadership and staff had a Democratic bias on policy issues. Republican Bill Owens of Colorado cited the choice of actor and director Rob Reiner, a Democratic activist, as a speaker. Mr. Reiner leads a foundation to improve early childhood education.

Republican Jeb Bush of Florida said an overhaul, rather than a federal bailout, was the best way to address the rapidly rising costs of Medicaid, the state-federal program that guarantees health care to 44 million poor people.

The system won't work much longer without sweeping changes, said Republican Bob Taft of Ohio. "We simply can't sustain 10% to 15% growth continually."

The Bush Medicaid proposal offers states that choose to participate more flexibility in coverage and services offered. The president is proposing an additional $3.25 billion next year and $12.7 billion over seven years, but would lower spending in equal measure in the following three years.

The administration's proposal wouldn't affect the poorest people, whom states are required to serve. The flexibility would allow states to expand or limit services to people that can be added to Medicaid at states' discretion, including children and pregnant women with incomes just above the poverty line.

It also gives states more leeway on optional benefits -- notably prescription drugs, dental and vision care and some services for the elderly -- that could be limited under the proposed program.

Many Democrats said they worried that the president's proposal would worsen the problem because it promised more money up front and less down the road.

"I have grave concerns about what it does in the out years," said Democrat Janet Napolitano of Arizona. Her state brings in the same revenue this year as it did four years ago, but it must pay for a half-million more people on Medicaid. "Down the road, am I leaving a billion-dollar problem?" she said.

One change that all governors supported was asking the federal government to pick up all costs of health care for poor elderly who could be covered by Medicare, the federal program for people 65 and older, but are now covered by Medicaid. They estimate that change would save states $80 billion, a third of all Medicaid costs.

Two new governors discussed their own plan to lower prescription drug costs. Democrat Jennifer Granholm of Michigan and Republican Jim Douglas of Vermont announced last week that they would join in a purchasing pool to leverage lower prices on prescription drugs, one of the fastest rising costs of health care.

"The more you buy the more you can negotiate a lower price," said Gov. Granholm, who added that she's talked with a half-dozen governors who were interested in joining them. "This is a bipartisan effort."

Copyright (c) 2003 The Associated Press

Updated February 23, 2003 9:59 p.m. EST


Brian Potts 
Managing Editor, CAL/AAEM News Service 
MS-IV, UC Irvine 
MD/MBA candidate 
pottsbri@yahoo.com


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<P class=articleTitle style="MARGIN: 0px">Submitted to Cal/AAEM News Service by Dr. Durkin</P>
<P class=articleTitle style="MARGIN: 0px">&nbsp;</P>
<P class=articleTitle style="MARGIN: 0px">=====================================</P>
<P class=articleTitle style="MARGIN: 0px">&nbsp;</P>
<P class=articleTitle style="MARGIN: 0px"><A href="http://online.wsj.com/article_email/0,,SB1045965009654159463,00.html">http://online.wsj.com/article_email/0,,SB1045965009654159463,00.html</A></P>
<P class=articleTitle style="MARGIN: 0px">&nbsp;</P>
<P class=articleTitle style="MARGIN: 0px">2/23/03</P>
<P class=articleTitle style="MARGIN: 0px">&nbsp;</P>
<P class=articleTitle style="MARGIN: 0px">Governors Agree Medicaid Is Sapping States' Resources</P>
<DIV style="PADDING-RIGHT: 0px; PADDING-LEFT: 0px; PADDING-BOTTOM: 0px; MARGIN: 0px; FONT: bold 16px/17px Times New Roman, Times, Serif; COLOR: #666; PADDING-TOP: 13px">State Leaders Are Seeking Solutions To Crisis, but Partisan Conflicts Loom</DIV><SPAN style="FONT: bold 12px times new roman, times, serif">
<P style="FONT: bold 10px times new roman, times, serif"><SPAN style="FONT: bold 10px times new roman, times, serif"><B>Associated Press</B></SPAN><BR></P><!-- The Wall Street Journal Interactive Edition --></SPAN>
<P class=times>WASHINGTON -- Governors say the national program that guarantees health care for the poor bears much of the blame for states' financial woes, but they disagreed over whether President Bush's proposed changes will help the situation or make it worse.</P>
<P class=times>In Washington for their annual winter meeting, members of the National Governors Association are hoping to present a united front on transportation needs, homeland-security funding, Medicaid and more. But partisan politics threatened their goal.</P>
<P class=times>Democrats charged that the Bush administration was trying to squelch an open dialogue. On Monday, governors were to visit the White House to meet with Mr. Bush and administration officials on policy issues. Several Democrats, however, said the White House planned to allow each governor only two questions, which needed to be approved before the meeting. White House officials promised a wide-ranging exchange.</P>
<P class=times>"The White House should not try to control what the nation's governors should do and say," said Democrat Bill Richardson of New Mexico.</P>
<P class=times>Republicans complained, however, that the association's leadership and staff had a Democratic bias on policy issues. Republican Bill Owens of Colorado cited the choice of actor and director Rob Reiner, a Democratic activist, as a speaker. Mr. Reiner leads a foundation to improve early childhood education.</P>
<P class=times>Republican Jeb Bush of Florida said an overhaul, rather than a federal bailout, was the best way to address the rapidly rising costs of Medicaid, the state-federal program that guarantees health care to 44 million poor people.</P>
<P class=times>The system won't work much longer without sweeping changes, said Republican Bob Taft of Ohio. "We simply can't sustain 10% to 15% growth continually."</P>
<P class=times>The Bush Medicaid proposal offers states that choose to participate more flexibility in coverage and services offered. The president is proposing an additional $3.25 billion next year and $12.7 billion over seven years, but would lower spending in equal measure in the following three years.</P>
<P class=times>The administration's proposal wouldn't affect the poorest people, whom states are required to serve. The flexibility would allow states to expand or limit services to people that can be added to Medicaid at states' discretion, including children and pregnant women with incomes just above the poverty line.</P>
<P class=times>It also gives states more leeway on optional benefits -- notably prescription drugs, dental and vision care and some services for the elderly -- that could be limited under the proposed program.</P>
<P class=times>Many Democrats said they worried that the president's proposal would worsen the problem because it promised more money up front and less down the road.</P>
<P class=times>"I have grave concerns about what it does in the out years," said Democrat Janet Napolitano of Arizona. Her state brings in the same revenue this year as it did four years ago, but it must pay for a half-million more people on Medicaid. "Down the road, am I leaving a billion-dollar problem?" she said.</P>
<P class=times>One change that all governors supported was asking the federal government to pick up all costs of health care for poor elderly who could be covered by Medicare, the federal program for people 65 and older, but are now covered by Medicaid. They estimate that change would save states $80 billion, a third of all Medicaid costs.</P>
<P class=times>Two new governors discussed their own plan to lower prescription drug costs. Democrat Jennifer Granholm of Michigan and Republican Jim Douglas of Vermont announced last week that they would join in a purchasing pool to leverage lower prices on prescription drugs, one of the fastest rising costs of health care.</P>
<P class=times>"The more you buy the more you can negotiate a lower price," said Gov. Granholm, who added that she's talked with a half-dozen governors who were interested in joining them. "This is a bipartisan effort."</P>
<P class=times><I>Copyright (c) 2003 The Associated Press</I></P><!-- article end -->
<P class=article><I>Updated February 23, 2003 9:59 p.m. EST</I></P><BR><BR><STRONG>Brian Potts <BR>Managing Editor, CAL/AAEM News Service</STRONG> <BR>MS-IV, UC Irvine <BR>MD/MBA candidate <BR>pottsbri@yahoo.com<p><br><hr size=1>Do you Yahoo!?<br>
<a href="http://rd.yahoo.com/finance/mailtagline/*http://taxes.yahoo.com/">Yahoo! Tax Center</a> - forms, calculators, tips, and more
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