House endorses resolution urging Congress to fight Medicaid cuts

House votes 112-24 in favor of statement admonishing Bush administration cuts to health care services

February 7, 2008

AUGUSTA – With a swift and convincing vote Thursday morning, the Maine House of Representatives issued a clear message to the Bush administration and the federal Center for Medicaid Services that new cuts in services provided by the federal program will have a severe and damaging impact on the health of Maine people and the strength of the State’s economy.

The House voted 112-24 in favor of a joint resolution inspired by an announcement at the end of January from the Center for Medicaid Services that the Medicaid program would no longer provide reimbursements for a host of vital services provided to children, the elderly and people with disabilities.

“We are calling on Congress and the President to take a second look at these rules that will cause great disturbances in Maine,” said Rep. Jeremy Fischer, D-Presque Isle. Fischer is the House Chairman of the budget writing Appropriations Committee and was the primary co-sponsor of the resolution, along with Senate Appropriations Chairwoman Peggy Rotundo, D-Androscoggin County. The resolution passed the Senate unanimously on Wednesday.

The resolution cites the major impact that the President’s plan will have on all Maine people, regardless of whether they are receiving the services or not.

“The changes serve as an immediate $45 million cut in funds to the State to provide services at a time when Maine is already facing at least a $95 million shortfall in the state budget, and Maine property taxpayers will have to shoulder the burden of increased local costs to provide the services that will no longer be paid for by the Federal Government,” it reads in part.

The changes, which were released less than two months before they will be implemented, would eliminate reimbursements for targeted case management, which ensures that people with disabilities, especially children, are getting proper medical, social, educational and other services; rehabilitation services, which provide therapy for people of all ages to improve health and functional abilities; cut reimbursements for school transportation and administrative services for children with disabilities; reduce reimbursements to doctors, making it more difficult for doctors to take on Medicaid patients; and eliminate the ability for private facilities to earn matching funds from the government for the services they provide.

The cuts will immediately create a $45 hole in the biennial budget, and deliver a $140 million blow to vital health care providers in Maine. Providers statewide fear that the loss of funds would cause them to close shop or cut jobs, and leave thousands of Mainers with disabilities, children and the elderly without important health care services.

The news of the federal rule changes comes at a time when the state must work to balance its own budget. With the national economy faltering and a federal economic stimulus perhaps months away, Maine must seek ways to deal with the cuts, some of which will go into effect as early as March 1.

“The problems we are facing in Maine are great already, and we don’t need further challenges to our budget,” Fischer said on the House floor. “These changes will deliver a $45 million cut to the state budget and cost $140 million to local communities. We don’t believe our constituents can afford these cuts.”

The federal Medicaid rule changes will impact many communities around the state. Whether it is for children in Head Start, for children with special needs who need transportation to school, or for people with multiple conditions who require additional attention in order to coordinate services, people in every county will be affected. Additionally, property taxpayers will be required to pick up additional local costs because the federal government mandates that certain services must be provided whether they are reimbursed or not.

“The policy decisions that were made to institute these changes seem to be short-sighted and will have a negative impact on the health, safety and economic potential of not only the State of Maine, but of the Nation,” the resolve concludes, with a final request “that the elected members of the United States House of Representatives and Senate defend the vulnerable citizens, children, seniors, service providers and taxpayers of Maine and the United States by working to withdraw these harmful changes before they go into effect.”

Only 24 members of the 151-member House voted against the measure urging Congress to defend the state from the cuts, all Republicans.

The Maine Secretary of State will send copies of the resolution to the President of the United States Senate, the Speaker of the United States House of Representatives and to each member of the Maine Congressional Delegation.

The entire text of the resolution appears below.

Contact:

Travis Kennedy, Communications Director, 287-1433

JOINT RESOLUTION MEMORIALIZING THE MEMBERS OF THE UNITED STATES CONGRESS TO ACT IN THE BEST INTERESTS OF MAINE CITIZENS CONCERNING MEDICAID CHANGES

WE, your Memorialists, the Members of the One Hundred and Twenty-third Legislature of the State of Maine now assembled in the Second Regular Session, most respectfully present and petition the United States Congress as follows:

WHEREAS, the federal Department of Health and Human Services, Centers for Medicare and Medicaid Services has released a set of changes to Medicaid service reimbursements that would eliminate or reduce federal reimbursements for certain targeted case management, rehabilitation, hospital outpatient, administrative and transportation services and prohibit the opportunity for private services to earn federal matching funds; and

WHEREAS, the reductions in reimbursements will be catastrophic for our social safety net, for the mentally ill, for those who are aged and for children with special education needs; and

WHEREAS, the Medicaid changes were issued with an extremely short timeline for states and local communities to adjust to the lost revenue and determine how to deliver the federally mandated services through their own budgets; and

WHEREAS, the changes will have a crippling effect of more than $140 million to the very necessary health care service industry, which employs thousands of people in the State and provides crucial services to Medicaid recipients; and

WHEREAS, the cuts will have a severely negative economic impact on our local communities, our State and our Nation at a time when President George W. Bush is talking about the need for economic stimulus to keep our country out of a recession; and

WHEREAS, the policy decisions that were made to institute these changes seem to be short-sighted and will have a negative impact on the health, safety and economic potential of not only the State of Maine, but of the Nation; now, therefore, be it

RESOLVED: That We, your Memorialists, respectfully urge and request that the elected members of the United States House of Representatives and Senate defend the vulnerable citizens, children, seniors, service providers and taxpayers of Maine and the United States by working to withdraw these harmful changes before they go into effect; and be it further

RESOLVED: That suitable copies of this resolution, duly authenticated by the Secretary of State, be transmitted to the President of the United States Senate, to the Speaker of the United States House of Representatives and to each Member of the Maine Congressional Delegation.