The governor defended his health care plan.
AUGUSTA – Republican leaders warned Wednesday that Gov. John Baldacci must change his Dirigo health care plan and slow down the expansion of health care coverage to low-income Mainers “or it will sink this place into oblivion.”
Baldacci responded saying he’ll have no part of “playing fall politics in the winter” or “creating a crisis that doesn’t exist. … The sky is not falling.”
Meeting with reporters, key Republicans said the state has a MaineCare system it cannot afford, and that the Dirigo program – which on July 1 would begin creating voluntary universal health care – has serious problems.
Republicans accused the administration of not being truthful about the scope of money problems in Maine-
Care, also known as Medicaid. Health care budgets given to legislators “have been crap,” and did not show the true costs of coverage, complained Sen. Karl Turner, R-Cumberland, who serves on the Appropriations Committee.
Republicans have said they like much about Dirigo. They see the need to build a state health plan. They want affordable insurance sold to small businesses. They also say they like the cost containment and consumer price information Dirigo would offer. But MaineCare is underfunded, which is causing millions of dollars in deficits. The state cannot afford to expand care to more poor people, they said.
If Dirigo were to go forward the way the law is written, “Dirigo is in trouble,” said Senate Assistant Minority Leader Chandler Woodcock, R-Farmington. “Someone has to admit that sooner or later from this administration. They’re not forthcoming with admission of difficulties.”
Specifically, Republicans want Dirigo delayed. Instead of providing health care coverage for thousands of low-income, uninsured Mainers starting July 1, they want to delay 18 months.
They also bashed a “tax-and-match” plan put forward by Democrats and Baldacci to plug MaineCare budget holes by taxing hospitals, which will draw down more federal dollars, and then repay hospitals. “I call it the ‘tax-and-no-match’ plan,” Turner said.
House Minority Leader Joe Bruno said Baldacci is reneging on his pledge not to raise taxes. “This is a tax,” Bruno said.
Much or all of this year’s $109 million deficit, and the $125 million deficit for the fiscal year that begins on July 1, is because of MaineCare, Republicans said. It’s not in the interest of the economy to balance health care shortfalls by cutting things like higher education or forcing hospitals to lay off workers, Republicans said.
Baldacci and Democrats disagreed, saying Dirigo is the solution, not the problem. The governor is not interested in delaying expansion, said spokesman Lee Umphrey, because “people are in need.”
If MaineCare is not expanded, more people will remain uninsured and hospital bad debt and charity care will increase, according to the administration.
Republicans are looking at money spent in covering more low-income people without considering “rebates coming back,” Baldacci said. “They only have half the information.” GOP members “want to create a crisis when one doesn’t exist,” he said.
Baldacci is looking for changed habits from consumers, institutions, hospitals and other providers to correct shortfalls. “We’re not ignoring a problem. This is being dealt with.”
The governor also disagreed with GOP accusations that the administration has not been truthful about the scope of money problems. He acknowledged there have been bad projections, but those problems have been addressed. “We’re on top of it.”
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