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STATE OF CONNECTICUT
EXECUTIVE CHAMBERS
HARTFORD, CONNECTICUT 06106 |
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M. Jodi Rell
Governor |
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FOR IMMEDIATE RELEASE
December 23, 2009
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Contact:
860-524-7313
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Governor Rell: State Seeks to Sue Federal Gov’t
If Nebraska Provision is Part of Health Care Reform Law
Cites ‘Gift’ of Fully Funded Medicaid
To Nebraska Senator in Exchange for Vote
Governor M. Jodi Rell today announced she has asked state Attorney General Richard Blumenthal to immediately pursue legal action and protect the state’s constitutional rights concerning the proposed special consideration U.S. Senate leaders granted to Nebraska in exchange for a “yes” vote on the federal health care reform bill.
A provision written into the massive bill will allow the federal government to pick up 100 percent of the cost of Medicaid expansion in Nebraska in exchange for Nebraska Senator Ben Nelson’s pledge for his vote. Connecticut is traditionally reimbursed at 50 percent for Medicaid, the government-subsidized health care for low-income and poor individuals.
“The inequity of this provision is astonishing. The doling out of favors for senators is appalling. The cost of this federal health care bill is beyond comprehension because of all the special provisions included to garner the 60 votes for passage,” Governor Rell wrote in her letter of December 23 to Attorney General Blumenthal.
The Governor expressed outraged that cumbersome, costly add-ons – ‘gifts’ to many states for favorable votes – are contributing to one of the most costly pieces of legislation in history.
“By the time Washington finishes with this proposal and drops it at the taxpayers’ doorsteps, it will be monstrous. The Senate may get their votes, but the American taxpayer will get the bill,” Governor Rell said. “The best Christmas gift Congress could deliver to the American people would be to strip out every special consideration, every gift, every piece of pork and concentrate on the heart of the matter – real and affordable reform.”
Under the proposed legislation, the federal government will fully pay for all of Nebraska’s new enrollees below 133 percent of the poverty level after 2016 and beyond. Governor Rell said if the terms of the Nebraska agreement applied to Connecticut, the state has the potential to receive up to $262 million annually in additional federal reimbursement.
“Senator Nelson himself has said that his agreement ‘shield(s) Nebraska from an unfunded mandate…’ What about the unfunded mandate for Connecticut and the other states? Our 50 states should be treated equally; no preference should be given to one state over the other,” the Governor wrote.
December 23, 2009
Richard Blumenthal
Attorney General
55 Elm Street
Hartford, CT 06106
Dear Attorney General Blumenthal:
As you know, the fifty states traditionally receive only a partial reimbursement of their Medicaid expenses on a scale correlated to the individual state’s wealth. So-called higher income states receive the lowest allowable federal reimbursement rate, which is 50% of Medicaid expenses. Other less wealthy states may receive up to 76%. For example, while Nebraska is reimbursed at 60%, Connecticut is traditionally reimbursed at 50%. Under the American Recovery and Reinvestment Act (aka “federal stimulus program”), Connecticut is reimbursed temporarily at a higher rate ranging between 50 – 60.0125% based upon unemployment rates. This reimbursement rate, however, will return to 50% when the stimulus program ends.
Like many, I have been watching the national health care debate with much interest. Frankly, I was outraged to learn of Nebraska Senator Ben Nelson’s pledge of his vote for the national health care bill in exchange for, among other things, 100% federal reimbursement of Nebraska’s expanded Medicaid population costs. As I understand the proposed bill, the federal government will – incredibly - fully pay for all of Nebraska’s new enrollees below 133 percent of the federal poverty level after 2016 into perpetuity. This reimbursement is unfair to other states – to say the least. Senator Nelson himself said that his agreement “shield[s] Nebraska from an unfunded mandate….” What about the unfunded mandate for Connecticut and the other states? In the event that the terms of the Nebraska agreement applied to Connecticut, we have the potential to receive up to $262 million annually in additional federal reimbursement.
The inequity of this provision is astonishing. The cost of this health care bill is beyond comprehension because of all the special provisions included to garner the requisite 60 votes for passage. Said another way, nearly every Senator has received some special consideration for a favorable vote. The process is one that is disturbing at best for the American public. While everyone has received something, Nebraska’s “gift” is particularly galling. In this time of extraordinary fiscal challenge, when states are facing record budget deficits and are seeing HUSKY and Medicaid case loads growing, all could use 100% reimbursement.
Therefore, if this bill passes into law in its present form, I am asking you to immediately pursue legal action on behalf of the State of Connecticut to ensure that Connecticut also receives the 100% reimbursement of costs for this underfunded federal mandate. Our 50 states should be treated equally; no preference should be given to one state over another.
I am sure you understand the importance of this matter and concur with my objectives. Thank you for your assistance and I eagerly await your action.
Sincerely,
M. Jodi Rell
Governor
Content Last Modified on 12/24/2009 1:28:31 PM
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