Governors Lay Out Plans for New Initiative on Health Care Reform

During the National Governors Association annual meeting on Monday, Chair Vermont Gov. Jim Douglas (R) said that his inaugural initiative will focus on health reform, HealthLeaders Media reports.

The initiative -- Rx for Health Reform: Affordable, Accessible, Accountable -- aims to:

Give governors information to help them transition to a new health care system and help states "build capacity and create a blueprint" for implementing health reform;

Develop health system improvements and cost-containment measures at the state level; and

Assist states in implementing health insurer reforms, creating statewide health insurance exchanges and incorporating other national reform initiatives.

Sebelius Meeting

Also during the meeting, HHS Secretary Kathleen Sebelius discussed House Democrats' health reform legislation (HR 3200), including its impact on states' Medicaid programs.

Under the bill, nonelderly U.S. residents with annual incomes at or below 133% of the federal poverty level would be eligible for Medicaid coverage.

The House bill calls for the federal government to pick up the entire tab for the new beneficiaries -- excepted to cost about $438 billion over 10 years -- while a similar proposal in the Senate Finance Committee would have the federal government cover those costs for only five years (Simmons, HealthLeaders Media, 7/21).