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Wednesday, December 30, 2009
Schwarzenegger, Paterson Slam Senate Health Care Bill
Blue State Governors Rip Senate Health Care Bill
The governors of the nation’s two largest Democratic states are leveling sharp criticism at the Senate health care bill, claiming that it would leave their already financially strapped states even deeper in the hole.
New York Democratic Gov. David Paterson and California GOP Gov. Arnold Schwarzenegger are urging congressional leaders to rework the Medicaid financing in the Senate-passed bill, warning that under that version their states will be crushed by billions in new costs.
After the Senate passed the bill in a Christmas Eve vote, Paterson said the expansion would leave New York $1 billion in the lurch. The state faces a $6.8 billion budget shortfall heading into the 2010 fiscal year.
“[I] am deeply troubled that the Senate version of the bill worsens what was already an inequitable situation for New York and I will continue to be an advocate on behalf of New Yorkers to ensure we are treated fairly by this critical federal legislation,” Paterson said in a statement.
In a letter to House Speaker Nancy Pelosi, Schwarzenegger wrote that the legislation would create a “crushing new burden” for a state with a whopping $20.7 billion budget deficit.
“When asked for my support, I was assured that federal legislation would not increase costs to California or include new unfunded mandates,” Schwarzenegger wrote. “Unfortunately, under nearly every scenario we can predict, the federal health care reform legislation being debated would cost California’s General Fund an additional $3 billion to $4 billion annually.”
The resistance from the governors of two Democratic megastates underscores the anxieties facing states as they grapple with the prospect of a massive expansion of the Medicaid program.
The problem is that New York and California, both of which already have expansive Medicaid programs, will pay a higher share of the new expansion costs than many other states that have traditionally limited coverage.
“The inequity built into the bill puts hardship on states and would put them in the position of making cuts to providers,” said Susan Van Meter, vice president of federal relations for the Healthcare Association of New York State.
Schwarzenegger warned that the Senate health care legislation could sink his state.
“As the partner responsible for implementing this program, I am telling you that our Medicaid program is already at the breaking point, and if federal health care reform is passed without addressing the underlying faults in the system, health care reform will fail,” Schwarzenegger wrote in his letter to Pelosi. “[I]f Congress fails to address the existing unfunded mandates and adds yet another layer, federal health care reform could collapse the very safety net system it seeks to expand.”
Both governors’ criticisms are notable because they are distinct from the opposition to the health care bill voiced by many Republican governors. Neither Paterson nor Schwarzenegger has opposed Democratic health care reform efforts in general and both have been largely supportive of President Barack Obama’s domestic agenda.
Schwarzenegger has embraced Obama and singled him out for his “great leadership” in a joint appearance in Los Angeles in March. Obama returned the favor by calling the California governor an “outstanding partner.” And in an interview with CNN as recently as last week, Schwarzenegger said Obama "should get a straight A" for his first year in office "when it comes to effort."
While Paterson’s relationship with Obama has been cool since the White House asked him earlier this year not to pursue a bid for a full term in 2010, he is not philosophically at odds with the administration.
“The bottom line here is money,” Rep. Eliot Engel (D-N.Y.) told POLITICO on Monday, adding that bill the House passed in November was far more generous to New York. “I think that if a state like mine is doing what it is supposed to be doing we should be praised and not punished.”
In a Christmas Day op-ed that appeared in the Buffalo News, Paterson wrote, “New York taxpayers are being used to pay for handouts to other states.”
“New York was an early leader in covering its citizens, with limited assistance from the federal government. The Senate bill will fund Medicaid expansions for states that lagged far behind New York while depriving New York of the same funding. We are being punished for our leadership,” Paterson wrote.
Paterson has an ally in another prominent officeholder who is considered a presidential ally: New York City Mayor Michael Bloomberg, who has enjoyed a mutually beneficial political relationship with Obama.
Last week, Bloomberg called the Senate-passed bill a “disgrace,” and warned that if it could result in city health clinic closings if it were enacted as passed.
Paterson also carries the backing of the majority of the New York House delegation, which last week wrote a letter to Pelosi and Senate Majority Leader Harry Reid asking them to correct the inequities as the bill moves into conference negotiations.
New York Democratic Sens. Chuck Schumer and Kirsten Gillibrand said they were receptive to Paterson’s concerns.
"We agree that states that have already expanded their Medicaid programs should be rewarded for their generosity, and we are going to work very hard to make sure that happens in conference," Schumer said in a statement.
Brendan Daly, a Pelosi spokesman, told POLITICO that the speaker intended to address Schwarzenegger’s concerns in the upcoming conference negotiations.
“While the House health insurance reform bill is more favorable to California than the Senate bill, we understand the governor’s concerns, and we will work with the Senate to address them when we reconcile the two bills. Our goal is to ensure that all states are treated fairly,” Daly said.
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Sources: Politico, Google Maps
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