Appointment Of Conferees On H. Con. Res. 95, Concurrent Resolution On The Budget For Fiscal Year 2006
Madam Speaker, I would like to read a part of a letter from the National Governors Association to both the Speaker and the Democratic leader and Senator Frist and Senator Reid. It says, ``Reform, however, should not be part of a 2006…
Madam Speaker, I would like to read a part of a letter from the National Governors Association to both the Speaker and the Democratic leader and Senator Frist and Senator Reid.
It says, ``Reform, however, should not be part of a 2006 fiscal year budget reduction and reconciliation process, especially if it does nothing more than shift additional costs to the States.''
We have a problem with health care costs in our country. Medicaid is one part of it. Medicare costs and private insurance and private health care is actually rising higher faster than Medicaid. Yet what we are doing with this budget resolution is actually penalizing senior citizens, and particularly children, because so much of our children's hospitals, so much of their funding comes from Medicaid because they deal with children totally.
I know in Houston, the Texas Medical Center, we have the Texas Children's Hospital, over 50 percent of their funding comes from Medicaid because they take care of children. We have to deal with health care costs, but let us not balance it on the backs of our children and our senior citizens.
National Governors Association,
December 22, 2004.
Hon. Bill Frist,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Harry Reid,
Minority Leader-elect, U.S. Senate,
Washington, DC.
Hon. J. Dennis Hastert,
Speaker, House of Representatives,
Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, House of Representatives,
Washington, DC.
Dear Senator Frist, Senator Reid, Speaker Hastert, and
Representative Pelosi: The Nation's Governors look forward to
working closely with the Administration and Congress to
reform Medicaid. Reforming the Medicaid system is the highest
priority for the Governors, and will result in cost savings
and efficiencies for both the federal and state governments.
Reform, however, should not be part of a 2006 fiscal year
budget reduction and reconciliation process, especially if it
does nothing more than shift additional costs to states.
Governors are committed to administering the Medicaid
program in a very cost-effective way, and as equal partners
in the program have a tremendous incentive to continue doing
so. This is reflected in the fact that the annual growth in
Medicaid per capita spending has not exceeded approximately
4.5 percent per year, substantially below the growth rate of
private health insurance premiums, which have averaged 12.5
percent per year for the last three years. Total Medicaid
costs, however, are growing at a rate of 12 percent per year
and now total Medicaid expenditures exceed that of Medicare
primarily due to two major factors that are largely beyond
the control of states. First, states, over the last four
years, have experienced large case load increases of
approximately 33 percent. Second, and far more costly to
states, are the impacts of long-term care and of the dual
eligible population. Medicaid currently accounts for 50
percent of all long-term care dollars and finances the care
for 70 percent of all people in nursing homes. Furthermore,
42 percent of all Medicaid expenditures are spent on Medicare
beneficiaries, despite the fact that they comprise a small
percentage of the Medicaid caseload and are already fully
insured by the Medicare program. Benefits for the dual
eligible population should be 100 percent financed by
Medicare.
We agree that maintaining the status quo in Medicaid is not
acceptable. However, it is equally unacceptable in any
deficit reduction strategy to simply shift federal costs to
states, as Medicaid continues to impose sever strains on
state budgets. Our most recent survey of states shows
Medicaid now averages 22 percent of state budgets. This
commitment has caused a strain on funding for other crucial
state responsibilities. These funding challenges will become
more acute as states absorb new costs to help implement the
Medicare Modernization Act for the millions of dual eligible
beneficiaries.
We look forward to working with you on Medicaid reform.
Sincerely,
Governor Mark R. Warner,
Chairman.
Governor Mike Huckabee,
Vice Chairman.