Governors Unite Against Medicaid Caps in Republican Health Plan

Health care legislation is a pressing issue this year, with Democrats and Republicans proposing contrasting plans to widen access to health insurance without raising taxes. In a letter to Senator Bob Dole, governors from both parties expressed their opposition to a key aspect of the Republican plan, citing strict limits on Federal spending for Medicaid as a major concern. The governors, led by Gov. Carroll A. Campbell Jr. of South Carolina, emphasized the importance of maintaining a state and Federal partnership in financing Medicaid. According to the governors, caps on Federal spending for Medicaid would impose a significant unfunded mandate on states, leading to state budget crises.

Key Takeaways:

• The governors are united in opposition to the Republican plan's caps on Federal spending for Medicaid, viewing it as a major concern that could lead to state budget crises.
• The governors are calling on Congress to pass health care legislation this year, even if the bill is less comprehensive than the President's proposal.
• The bipartisan criticism of Senator Dole's proposal could weaken the Republican leader's position as he prepares to oppose a Democratic plan.
• Gov. Mario M. Cuomo of New York calls the Republican proposal for limits on Medicaid "a disaster," estimating that it would impose $13 billion in additional Medicaid costs on his state over eight years.
• The American Federation of State, County and Municipal Employees also denounced the proposal, stating that it would put states in a "fiscal straitjacket" and impose additional costs on states like California and Texas.
• The governors are emphasizing the need for both sides to be willing to compromise and prioritize practical solutions.
• The governors' association is advocating for Federal subsidies for health care and health insurance to be based on personal income, rather than the current arbitrary categorical distinctions.

Statistics:

• California's Medicaid costs would rise by approximately $13 billion over eight years, similar to New York's.
• The Republican proposal would prohibit states from offsetting these costs by eliminating Medicaid coverage for any groups now entitled to benefits.
• The current Medicaid system in the United States is financed jointly by the Federal Government and the states, with the Federal Government paying a majority of the costs.

Sources:

• A letter to Senator Bob Dole from the National Governors' Association
• A telephone interview with Gov. Mario M. Cuomo of New York
• A statement from Gerald W. McEntee, president of the American Federation of State, County and Municipal Employees.