Medicaid
money a
top concern
AUGUSTA – One day after hundreds of disabled residents protested possible cuts in state health services, Gov. John Baldacci said Tuesday he’s willing to discuss raising some taxes and slowing Medicaid expansion to avoid some reductions.
“We’ll talk about slowing down Medicaid (expansion) in Dirigo” scheduled to begin July 1, Baldacci said.
And when asked about raising cigarette or alcohol taxes, the governor said he’s “willing to talk about everything.”
But he stressed that the state must alter the way things are done. “We have to make spending changes. We’ve got to go through and redesign these programs” to eliminate duplication and fragmentation.
A willingness to discuss raising taxes represents a shift for Baldacci, who so far has stuck to his position that Mainers are overtaxed and that the state can’t afford to tax more.
During an interview Tuesday the governor again cautioned that Mainers are taxed too heavily and program changes must happen. But he also said he wants to protect Maine’s most vulnerable. The governor pledged to review public comment given Monday and his proposed cuts.
If Baldacci does agree to raise some taxes, the move would likely be supported by Democrats; many favor raising cigarette, alcohol or junk food taxes. Republicans are expected to object to any tax increases, but would embrace slowing down the Medicaid expansion. GOP members have said the state can’t afford existing health programs, let alone the new Dirigo plan.
Maine is facing a $128 million Medicaid shortfall, due to less money from the federal government and higher medical costs. The administration is proposing $80 million worth of medical services be cut or eliminated. It’s less clear what programs would be scaled back or cut, but the administration intends to limit or require prior approval for a long list of adult MaineCare services.
Baldacci said his top Cabinet members were at Monday’s hearing. He said he is aware of the painful testimony and is willing “to review things.”
“People are certainly concerned and upset about what’s being done. I understand that,” he said. However “tough decisions are needed so that Maine will be better in the long run,” Baldacci said. “I intend to work with providers and consumers as we get control of these programs. We can’t always run to the taxpayers.”
He said his administration will work to redesign a MaineCare system “where care will be given, appropriate and timely care.” But he’ll be requiring more prior approval of services to reduce duplication and waste, he said.
“We’re a small state. We’ve got to get these organizations to work better and service people. … None of this is stuff we enjoy doing. We’re at a critical time in the state’s history. We’re faced with a lack of federal support, about $70 million less in federal support for Medicaid. At the same time we have cost increases with health care, and … one of highest tax burdens in the country. We don’t have much maneuvering room.”
One of the people who testified Monday was Angela Joyce of Lisbon, who called a proposal to expand laptop computers to high school students “a waste.” She begged lawmakers not to cut the therapy her mother needs to recover from a stroke.
On Tuesday, Baldacci responded to her concerns saying the laptop program must expand. “We have to make sure we invest in the future. It’s just like any family or business. We’ve got to get costs under control,” he said. Young adults with computer skills will attract jobs to Maine. Not to invest and control costs “is a death spiral.”
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