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07.22.2008 12:00 pm

UPDATE: Nixon promises no tax hikes to restore Medicaid coverage

Special to the Post-Dispatch
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Missouri Attorney General Jay Nixon chose the Grace Hill Neighborhood Health Center at 1717 Biddle Street for his first rollout today of the details of his key pledge if elected Missouri’s next governor — restoring Missouri’s 2005 Medicaid cuts.

“Our health care system is broken and, quite frankly, everyone knows it,” said Nixon, a Democrat, at his news conference.

And to fix it, he said, won’t require a tax increase.

For one thing, the state can tap into the federal money that it has rejected — roughly $2 for every $1 the state spends — since the cuts. Nixon says the lost federal money amounts to close to $2 billion, since 2005.

Nixon contended that the $800 million budget surplus that the Blunt administration now brags about was created by denying coverage to the elderly, the poor and the disabled, like Brenda Benedict of Maplewood.

Benedict, 59, is a disabled social worker who lost her coverage when the state eliminated its Medical Assistance for Workers with Disabilities program. She was among those on hand when Nixon laid out his plan.

Nixon’s plan centers on five points:

1) Restore the cuts, which he says reduced or eliminated health coverage for 400,000 Missourians.

2) Expand access for low-income children. About 64,000 Missouri children who are eligible for the state/Medicaid Children’s Health Insurance Program (SCHIP) aren’t enrolled in the program.

He also would allow families making more than 300 percent of the poverty level to “buy in” to the SCHIP program, which is allowed in many other states.

3) “Use technology and market forces” to reduce the costs of health insurance coverage for all Missouri families, which he says has skyrocketed.

Among other things, Nixon is promising to set up a “Show-Me Health Consumer” web page, where people can compare plans.

4) ”Strict performance reviews” of the current health system, and ending some of the duplication caused by some of the 60 state agencies, boards and commissions who deal with health care.

5) Focusing more on preventative care and personal responsibility.

Nixon said today’s timing of his rollout was dictated more by the fact that “it was ready,” and not by the fact that it’s two weeks before the Aug. 5 primary.

He has no serious Democratic opposition, but the Republicans are watching a battle between two high-profile candidates — U.S. Rep. Kenny Hulshof and state Treasurer Sarah Steelman– who are debating this afternoon on KMOX.

(Yours truly is one of the panelists.).

Both Republicans have defended Gov. Matt Blunt’s Medicaid cuts, which were enacted by the state Legislature.

Said Nixon spokesman Oren Shur:

“Today Jay Nixon outlined his plan to restore the health care cuts, expand coverage to more children and drive down costs for Missouri families. We hope our opponents will take this opportunity to tell the people of Missouri why they continue to embrace Gov. Blunt’s health care cuts.

“Our health care system is broken, families can’t afford coverage, and our opponents don’t even seem to notice. They say they support Blunt’s health care cuts and then they want to just sweep our state’s health care crisis under the rug and pretend it doesn’t exist.”

UPDATE — Blunt spokeswoman Jessica Robinson just sent over the following reply, in reference to the post’s statement that “Nixon contended that the $800 million budget surplus that the Blunt administration now brags about was created by denying coverage to the elderly, the poor and the disabled…”:

Said Robinson: ”I just wanted to remind you that the changes the governor enacted to fix a failing health care system made up less than half of the total budget reductions enacted in 2005. I think this fact clearly sheds light on the inaccuracy of Nixon’s comment. “

3 comments

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Thanks for the quote on no new taxes Jo. Copies and pasted it into my Nixon file for future reference.

— A CENTRIST
2:23 pm July 22nd, 2008

As I understand the issue facing Gov Blunt, it was similar to the problem facing Tennessee with Tenn Care. There, nearly 1 of 3 citizens were on the Medicaid assistance program in one form or another. The Gov in Tenn made no cuts, and the entire system collapsed. Gov Blunt made the cuts, as I understand it 100,000 citizens were eventually affected, and the system was preserved for the remainder of those on Medicaid. Tough decision.

If more citizens are added, and no additional tax revenues are raised, then the services will be cut or the service providers will not be paid. As has happened in other state, politicians made similar promises during the election campaign, and then providers complained or left the state.

As per the details above:

The federal govt has decreased some of the matching Medicaid funds, I believe, making point in paragraph 3 above problematic at best.

Point # 5 is reasonable. Gov Blunt has already proposed this. Mr Nixon should reference this in his public statements, to be fair.

Regarding point #4, what does strict performance reviews mean? Jay Nixon will oversee physician decisions?

Point #2B: reasonable enough, but this will require an expenditure on the part of some families, is Mr Nixon resolved to follow through on that plan?

Regarding insurance, increasing market forces means decreasing state control of insurance offerings, Mr. Nixon is opposed to this.

Further, as people realize Mr Nixon will give the insurance away ‘free ‘ they will drop their paid insurance and obtain his. This is termed ‘crowd out’. Less people paying for insurance means less insurance companies staying in MO.

Bottom Line: plan will play well in uncritical press coverage and to those citizens desperate for answers, but is not, as it stands above, realistic, and will lead to state budget deficits.

— MOactiveGOP
2:28 pm July 22nd, 2008

PS– there will be some who will say that is is wrong of Mr. Nixon to raise the hopes of the poor in this fashion, when he should know full well that this is not possible.

— MOactiveGOP
3:05 pm July 22nd, 2008