Romney Says There Are Already "Pots of Money" in the States to Pay For Health Care Reform---Where?
Mitt Romney says states could implement comprehensive health care reform without having to raise taxes.
However, states trying to replicate the Massachusetts health plan would likely have to raise taxes in order to pay for it. That is the conclusion of a November 3rd Boston Globe article. Here are some points:
- Massachusetts had something other states don't have--a $610 million uncompensated care pool that Mass was able to use for covering the uninsured.
- The uncompensated care pool comes from assessments on hospitals, insurers, and state tax revenue.
- Mass is using roughly $160 million from the uncompensated care pool, along with other state and federal funds, to fund Massachusetts plan.
Just where does Romney think these "pots of money" are in the states? As he should have learned in Massachusetts, that state's program already draws on the federal programs (SCHIP and Medicaid) to help pay for the plan. On top of that comes the $160 million from the "free care pool." With all of that there still isn't enough money--the regulator has had to back-off on the coverage mandate for the near poor because of a funding shortfall.
The Romney campaign's health plan has as its core the notion that there is enough money in the states already that they can craft their own version of health care reform and cover their people.
In California, the governor and legislature, now in a special session, are grappling with a state health reform plan that at last look had the Democrats proposing to pay for it with an employer payroll tax of 2% to 6.5%, taking the per pack cigarette tax from 87 cents to $2.87, and raising billions in new hospital taxes. And, that is after "creatively" using SCHIP and Medicaid money.
Romney says he wants the states to be "laboratories of innovation." But, Romney needs to tell us where these "pots of money" are in the states for health care reform.
Recent post: A Detailed Analysis of the Romney Health Care Reform Plan
4 comments:
My understanding is that the Free Care program in Massachusetts functions very similarly to the way State Disproportionate Share programs work in other states. So I guess it's possible that Romney is suggesting that states use State DSH funds as a first step towards universal coverage. There's a Houston hospital that received over $140 Million in State DSH funds last year, so the money is there even in resource-challenged states like Texas.
Making sure you preserve the federal match on State DSH dollars would obviously be imperative before deciding to reappropriate the funds.
Spike:
"Free care pools" are unique. They occur only in Mass, NY, NJ, and MD and not necessarily at the Mass level.
I'm certain that I've heard Romney admit that the MA plan would not be applicable to all states. In fact, I've heard him say on multiple occasions that while he would employ the same fundamental principles at the federal level, he would propose that each state be encouraged to take their own approach to covering their uninsured. Obviously, a state like CA with 6.5 million uninsured can not apply a carbon copy approach to health reform from a state with only a half a million uninsured.
I live in MA, I read the Globe daily, and I remember that article. I hate to beat the same old "liberal media" drum, but it's no secret that the Globe is not a big fan of Romney's - or many other Republicans for that matter. (For the record, I am a registered independent)
Cadzen:
So, where do the states get the money? Are you suggesting better use of SCHIP and Medicaid money can pay for insurance for all of the low-income.
Mass has about the lowest level of uninsured in the union and doesn't have enough money--having had to back-off on the mandate.
Calif has one of the higher levels of uninsured and doesn't have enough money--with lots of new taxes proposed.
Are you suggesting the states in between these two extremes do have the money?
Romney needs to tell us where the state's money will come from.
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