National Governors Association Pushes for Medicaid Funding Hike

Speaking on behalf of the National Governors Association on Wednesday, New York Gov. David Paterson (D) called for a new economic stimulus package that would provide "direct and immediate fiscal relief" for states, including a 5% increase in federal Medicaid reimbursements for two years, CongressDaily reports (Cohn, CongressDaily, 10/29).

At a House Ways and Means Committee hearing, Paterson said that a temporary increase in the Federal Medical Assistance Percentage should be provided to "states hardest hit by the current economic crisis." In addition, he called for a new stimulus package to include a moratorium on a regulation that reduces Medicaid payments for outpatient clinics.

Paterson said that "governors can only cut so much before we begin to jeopardize our fundamental responsibilities to our constituents," such as "providing health care for the most vulnerable" (Reichard, CQ HealthBeat, 10/29).

According to CongressDaily, "House Democratic leaders appear to be moving toward bringing a $100 billion economic stimulus package to the floor during a lame-duck session the week of Nov. 17."

Aides said a package in that price range was discussed on Tuesday and leaders were considering including Medicaid funds, an extension of unemployment benefits, expanding food stamp spending and funding for infrastructure projects (Bourge, CongressDaily, 10/29).

Opposition

Republicans showed signs of "pushing back" against plans for the economic stimulus package, CQ HealthBeat reports.

South Carolina Gov. Mark Sanford (R) testified that a $150 billion economic stimulus package would "dangerously encourage even more growth in governmental programs like Medicaid, which in state budgets across the nation already grew 9.5% per year over the last decade -- certainly unsustainable in our state."

Sanford added, "There may be better routes to recovery than a blanket bailout, including offering states like mine more in the way of flexibility and freedom from federal mandates instead of a bag of money with strings attached."

Committee ranking Republican Jim McCrery (La.) said, "We have to a great extent blurred lines between federal and state" responsibilities, adding, "What many are suggesting here today is that we blur these lines further" (CQ HealthBeat, 10/29).