Ellington

March 21, 2005

If you or someone you love depends on Medicaid, you should read this. And if you are not on Medicaid, you are paying for its services with your tax dollars, and you should read this, too. Mississippi Medicaid is one of the fastest-growing programs in the country. It doubled in cost in just five years. The growth is so rapid it is consuming state funds that have historically spent on other priorities like education.

To try and save the program, which serves one out of every four Mississippians, the Legislature passed a good plan last year that shifted 6% of all Medicaid recipients to the federal Medicare program for health care coverage because they were already eligible for Medicare. Despite the fear-mongering spread by some, Medicare provides good and comparable health care coverage as an alternative for those recipients. But that reform was stopped by a federal court before it could be implemented and save Mississippi nearly $100 million. (The state would have saved because the federal government pays 100% of Medicare, while the state pays only 25% of Medicaid costs.)

By the end of last year, the suspension of that reform combined with a much larger deficit than the previous administration had reported contributed to a $268 million deficit for this year, which had to be filled or the program would have shut down by March 11.

Though the deficit was announced in December, by last week the Legislature still had not acted, and Medicaid was about to go broke. So to save Medicaid, I called a Special Session over the weekend. Thankfully, the Legislature responded to my call and filled the deficit in just two days by taking money from the Health Care Trust Fund * the only place with enough money to fund that kind of deficit.

With the short-term emergency averted, the House and Senate are considering more savings in Medicaid to help keep the program from going broke in future years. The Senate has passed such a plan, but so far, the House has refused to accept it.

As these budgeting efforts continue, my administration is doing something that has never been done before in the history of Medicaid. We are conducting face-to-face interviews with Medicaid recipients to check eligibility so we can remove people from the rolls who actually are not eligible for benefits. This will make sure that taxpayer dollars for Medicaid are going only to help the truly needy.

Medicaid is finally changing for the better, but our work is not finished. Despite the out-of-control growth in Medicaid, there are some who reject reforming Medicaid and simply want to pump even more money into it. Imagine Medicaid as a broken-down car; their answer is just to put more gas in it.

Raising taxes is not the solution for the Medicaid mess because taxpayers are not the reason for the Medicaid mess. Tax revenue coming in to the state has increased 34% in recent years, but spending has shot up 50% at the same time. Taxpayers have done their part, but state leaders haven't done their job of controlling spending.

Medicaid needs more reform, not more revenue. Whether it is taxes on smokers or somebody else, any extra revenue generated by tax hikes will only give those in Jackson another excuse to spend more and put off enacting needed changes in our Medicaid program.

I hope all Mississippians will join me in the coming months to recreate a Medicaid program in our state that is efficient to providers, affordable to taxpayers, compassionate to the sick and available only to Mississippi's truly needy.

Haley Barbour is the governor of Mississippi.

# # #

Haley Barbour's phone numbers in Mississippi; all 601: 359-3150, 359-3150, 720-8733, 359-3150.

Previous Comments

ID

171032

Comment

What the holy doodoo is he talking about? What changes does he want to make in the Medicaid program to "fix" it? Classic Republican fear-mongering: Scary-sounding assertions with no specifics to back them or specifics on what to do about the problems. Sheesh.

Author

Tim Kynerd

Date

2005-03-22T08:33:25-06:00

ID

171033

Comment

I think it's pretty much straightforward; reform or we won't have enough cash to put in it.

Author

Ironghost

Date

2005-03-22T16:00:42-06:00

ID

171034

Comment

I'll say it again: He's offering no specifics to back up the fear-mongering, and no specifics about how he wants to change the program. (And neither are you. What does "reform" mean, specifically?) That's "the remains of yesterday's breakfast from so many oxen," buddy.

Author

Tim Kynerd

Date

2005-03-22T16:24:09-06:00

ID

171035

Comment

Ironghost, are you who I think you are? LTNS! Drop me an email if you can at [email][email protected][/email] and let's catch up. Re Barbour: Gotta say I agree with you, Tim. It was a really well-written editorial--reminds me that Barbour didn't become RNC chair for nothing--but in the final analysis, he makes no real suggestions on how he's going to make Medicaid any more solvent than it is now. Cheers, TH

Author

Tom Head

Date

2005-03-22T17:48:35-06:00

ID

171036

Comment

The best thing Haley can do is to for the state (which will probably be the worst thing for his career) is to RAISE TAXES to support it, at least on two-income households making more than $200,000 per year and on one-income households making over about $120,000. Plus about a 1% tax increase on businesses with net income after taxes of about $500,000 per year. That should give at least some relief.

Author

Philip

Date

2005-03-22T23:06:59-06:00

ID

171037

Comment

I would like to hear about his plan to replenish the Health Care Trust Fund. And I don't want to see any legislative pay raises until the money is paid back.

Author

Steph

Date

2005-03-23T13:07:09-06:00