I thank the Senator from Wyoming. I appreciate his perspective on this important issue because he is a physician. The Senator has cared for Medicaid patients, and he understands the Medicaid Program…
I thank the Senator from Wyoming. I appreciate his perspective on this important issue because he is a physician. The Senator has cared for Medicaid patients, and he understands the Medicaid Program better than anyone in this body. The Senator has also served in the State legislature, so he has that experience. He understands that, unlike Washington, States must balance their budgets every year.
I want to talk about the rollback of the Medicaid maintenance of effort or MOE requirement threatening both Medicare beneficiaries and the financial health of many States throughout the country. I think it is important to go through a little history on this subject.
When Medicaid was first established as a limited State-Federal partnership, less than 5 million Americans used this program. Today, nearly one in four is enrolled in this government program. Medicaid spending now absorbs nearly one-quarter of all State government budgets, often forcing severe cuts to other critical State programs.
Unfortunately, this situation is getting even worse with the Medicaid mandate first imposed in the stimulus bill and again in the partisan health care law. As a result of these Washington mandates, States are being forced to make drastic cuts to important priorities, such as education and law enforcement.
Unlike Washington, which too often just prints money to pay for out- of-control spending, States actually have to make tough budget decisions every year. States are facing the worst budget crisis since the Great Depression, with a collective $175 billion shortfall. Washington's micromanagement of State Medicaid programs makes it incredibly difficult for the States to balance their budgets and provide for those who are most in need. Because of the overly generous benefit programs that Washington forces on the States, they are unable to target health services to those most in need of assistance. Governors are unable to undertake commonsense reforms that root out program waste, fraud, and abuse.
The result of these MOE requirements is nothing short of a Washington-induced State fiscal crisis.
In my home State of Utah, the fiscal year 2012 budget shortfall will be approximately $390 million. That is a lot of money. My State has said:
MOE requirements imposed by the Federal Government will
cost the State $3.2 million annually.
This might not sound like a lot to the people in Washington, DC, who don't bat an eye at trillion-dollar deficits, but in Utah that is a lot of money in the State budget. My close friend in Utah, Governor Gary Herbert, said:
Not a State in this Nation is immune to tough budget
decisions, and sometimes Washington makes it even harder.
Utah must seriously weigh the real cost of Medicaid, one of
the largest and most expensive programs we have.
Unfortunately, Federal mandates tie our hands. Utah has zero
flexibility to respond to economic conditions, or the option
to scale the program back in a way that reflects local values
and priorities.
Governor Herbert and many others across the Nation have repeatedly
asked Washington to repeal these onerous Medicaid mandates. We have introduced legislation--the State Flexibility Act, as the Senator mentioned--to do exactly what the Governors have asked.
The State Flexibility Act fully repeals these burdensome Medicaid MOE regulations. It starts to put States back in control to balance their budgets while simultaneously lowering Federal entitlement spending. Our legislation will save taxpayers $2.8 billion over just the first 5 years. That is a lot of money.
Regardless of political affiliation, I am confident this bill has the potential to garner strong, bipartisan support in Congress, and it represents a strong first step toward achieving comprehensive Medicaid reform. Any Senator who has talked to his or her State's Governor knows we need to pass this legislation to enable States to survive the current fiscal crisis and to better care for the most vulnerable Medicaid beneficiaries in their respective States.
It is time for Congress to roll back these unreasonable MOE mandates and put the States, not Washington, back in charge.
I personally thank the Senator, my colleague from Wyoming, Mr. Barrasso, for working with us on this legislation. Without him here, I don't think we would be able to do anywhere near as much as we are doing. The Senator, in particular, brings a unique perspective to the debate over MOE requirements, and I don't know of any Senator who is serving his State any better than he.
I would appreciate hearing more of the Senator's thoughts on this matter because he has the experience, and he has operated on countless people, and he has done it whether they have been Medicaid beneficiaries, people who have insurance, or people who have nothing. I know that. I have great admiration for the Senator from Wyoming. These States have been heavily burdened with MOE requirements, which are bureaucratic unnecessaries. I would like to hear from the Senator how important that is.
Right.
And give the States flexibility to do what they can do better than the Federal Government. As a former medical liability defense lawyer back in my early days, I represented doctors, health care providers, nurses, and hospitals in defending them from what were, in most cases, frivolous suits that run up the cost of medicine.
I cannot tell you what it means to me to have Senator Barrasso in the Senate with all the medical experience he has had. Frankly, the States can do the job, but they cannot do it within budget if we keep piling regulation and onerous burdens on them, such as the partisan health care bill does.
Frankly, I want the Senator from Wyoming to know I feel it is an honor to serve with him and an honor to have a couple of medical doctors on our side. Dr. Barrasso and Dr. Coburn are both excellent doctors. They have lived through these problems. They know what they are like. They do not have to have anybody tell them what is wrong with the approaches we are taking. They know what is wrong.
Frankly, I thank the Senator from Wyoming for being willing to serve here.
That is right. I believe this will have great bipartisan support among the Governors and hopefully in this body. I thank Senator Barrasso for bringing this to our attention.