Medicaid savings unrealistic, study says
A plan to get federal flexibility in operating Medicaid is based on a Rhode Island experiment. But a study says that state got a "sweetheart deal" that has saved little.
Faulty information is driving a plan by Minnesota House Republicans to save $300 million in Medicaid spending over the next two years by seeking to exempt the state from some federal rules in exchange for a lump-sum block grant, a Washington think tank says.
The House proposal is based on a 2009 "global Medicaid waiver" for Rhode Island that some former officials say saved the state about $150 million in its first 18 months.
But the "savings" actually came from extra federal Recovery Act money to states -- including $400 million to Rhode Island -- to help them cope with the recession, said the report by health policy analysts at the Center on Budget and Policy Research, published last week and updated Tuesday.
The waiver was "a sweetheart deal between the Bush administration -- in its final week in office [in January 2009] -- and the Republican governor of Rhode Island," said author Judith Solomon, the center's vice president for health care policy. "You could not get a deal like that now."
In addition, the waiver did not seek permission to cut people and services from Medicaid, something Minnesota Republicans say they want.
Instead, Rhode Island got permission to spend up to $12.1 billion in state and federal money through 2013, although the state had projected spending only $10.8 billion. It also was allowed to get Medicaid coverage for some state-funded programs.
"Essentially, Rhode Island got a very good financial deal and permission to help care for people at home instead of nursing homes, and to negotiate harder on contracts -- things many states are doing on their own," Solomon said.
'Fantasy Island'
Minnesota DFL legislators have been skeptical of the $300 million savings included in the budget bill by Rep. Jim Abeler, R-Anoka, who heads the Health and Human Services Finance Committee. His committee will take testimony on the bill Wednesday and is likely to approve it Thursday. A Senate budget bill will be offered Wednesday.DFL Gov. Mark Dayton on Tuesday called the House Republican plan for health care spending "just 'Fantasy Island.'"
The bill would trim $1.6 billion from projected state spending, part of Republicans' goal to erase a $5 billion budget deficit by cutting spending and not raising taxes.
The waiver proposal is one of the largest chunks of budget savings in the bill. As is typical of bills that would alter state finances, Abeler sought a fiscal assessment by the Department of Human Services, but the department said it could not estimate savings without more detail about the money and the program flexibility that Minnesota would seek.
Abeler said his estimate of $300 million in savings is "conservative. We should be able to save twice that. We're a good state. We're not Mississippi [in terms of spending on health and social services]. ... We care about our people and we can do this better and cheaper if our hands are not bound" by federal rules.
Dayton said Republicans have not discussed the proposal with him and predicted that federal officials would not approve. "If you start making up these assumptions, where there is no basis in reality to them, it is a convenient gimmick to obscure the real consequences of some of these proposed cuts on real people's lives."
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Another Barely True statement from the GOP. Look at Politifact - the GOP scorecards are littered with Barely True and outright False statements.
posted by diogenesny on Mar. 22, 11 at 8:43 PM |
I just wish that the people dreaming these ideas up actually cared as much about the people who are living on the edge as their wealthy contributors.
posted by sunnyreader on Mar. 22, 11 at 8:48 PM |
Abeler said his estimate of $300 million in savings is "conservative. We should be able to save twice that. ----------------------- Looks like Abeler doesn't know what he is talking about or what he is doing. Can you think of any other gimmicks to waste time and money? On a side note -- have any of you Republicans created a single job since the start of the session? Do you have plans to create even a single job?
posted by vegas2112 on Mar. 22, 11 at 9:02 PM |
CBPP is not a "Washington think tank" but a far left liberal organization. They regularly call for higher taxes and more government "investment". Shame on you strib, this should be on the editorial page. It's hardly news, but an opinion of the reporter masking as news.
posted by olsonb5 on Mar. 22, 11 at 9:11 PM |
"CBPP is not a "Washington think tank" but a far left liberal organization.".............Reeeaaly! That says more about your far right philosophy than anything. --------------"On a side note -- have any of you Republicans created a single job since the start of the session?"....Of course not, they ran on "jobs" but have forgotten what that means, what silliness.
posted by luv2lisn on Mar. 22, 11 at 9:28 PM |
"Two politically conservative groups that oppose the Center on Budget and Policy Priorities's policy positions accuse the group of producing misleading studies.[5][6] These critics focus on what they consider to be fallacious assumptions and inaccurate projections made by the group's analysts. Defenders of the group note that the Center's analyses are based on the work of independent, nonpartisan authorities such as the Congressional Budget Office, the U.S. Census Bureau, and the Government Accountability Office." ....... "CBPP is not a "Washington think tank" but a far left liberal organization" posted by olsonb5 ,,,,, Oh really. Guess we know enough than to look for your guidance.
posted by rds1449 on Mar. 22, 11 at 9:32 PM |
So much effort is being spent looking for things to cut and places to find free money. When will they get started doing something productive?
posted by tutor57 on Mar. 22, 11 at 9:33 PM |
The real story of how off track the conservative are can be watched on TPT channel 2.2. They broadcast our legislature at "work" Listen to the bills the righties are proposing: drastic cuts that end up actually costing us more money. Laws that would be based on junk science - with the junk science written into the law. Makes me think of "Flat Earthers" and the Kansas Legislature that wanted to make π = 3 because the actual value was too complicated. Well, at least I'm resting easy knowing that it was not my vote that helped this crowd of Know Nothings into the Capitol.
posted by csjohn on Mar. 22, 11 at 9:46 PM |
With a POTUS like this - jobs will be only created for unions and government workers.
posted by grumpy66 on Mar. 22, 11 at 9:49 PM |
Why don't we save some real money and stop funding the endless, stupid wars - about $30 billion of Minnesota's tax money has gone to the wars. Enough. Enough. Enough.
posted by countryfirst on Mar. 22, 11 at 9:49 PM |
grumpy66 - With a POTUS like this - jobs will be only created for unions and government workers. ---------------- Hey, at least people will be working. And you'll have no one to blame but Republicans and your cherished corporations for hoarding the cash and NOT creating jobs.
posted by falcon1662 on Mar. 22, 11 at 11:14 PM |
Didn't Pawlenty take enough health care funds away from the poor, elderly and disabled? Enough with this stealing from the poor and giving to the rich, already. It's just like Peter Pan, but backwards!
posted by djfester on Mar. 22, 11 at 11:40 PM |
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