Will Maine Expand Medicaid? Governor Inslee Adds to the Debate.
In Maine, supporters of the Medicaid expansion under Obamacare have been relentless. In spite of Governor LePage’s protests, voters in Maine ultimately passed a Medicaid expansion with a ballot initiative. (here)
Governor LePage, ever the fiscal conservative, has fought the expansion based on simple budget considerations. He rightly assumes that with or without federal taxpayer support, an open-ended entitlement such as Medicaid could bust the state budget. For months, he said the only way he would support the expansion is if it could be funded without increasing taxes, without using one-time budget gimmicks, or if it didn’t raid the state’s rainy-day fund.
Voters have backed the governor into a financial corner. Unfortunately, he has floated the idea of a long-standing, but what should be a questionable method of raising money. He potentially wants to add a tax to hospitals. (here)
This maneuver has been around for years. Basically, state officials claim that hospitals benefit financially from expanding Medicaid – more people have health insurance (albeit poor-paying insurance) and fewer people require charity care. The hospitals then take this extra Medicaid money and give a portion back to the state. It’s a win-win. Hospitals fill more beds with paying patients and the state, because of the Medicaid federal match, gets more money from Washington, D.C.
Although this seems like a true scam and kick-back, the hospital tax has been around for decades in the traditional Medicaid program and has been encouraged by various federal administrations down through the years. (here)
Washington State Governor Inslee, either in his role as chair of the Democratic Governors Association or as part of his run for president in 2020, traveled to Maine to support the expansion. He touted the usual generalities of Medicaid expansion, but neglected to offer proof of better medical outcomes for people with Medicaid health insurance nor did he address the financial burden to federal and state taxpayers. He did not admit that “free” money from Washington, D.C., is not really free since federal taxpayers are state taxpayers, as well.
Voters in Maine are forcing Governor LePage to come up with a funding mechanism for the Medicaid expansion. Unfortunately federal taxpayers, as well as those in Maine, will be the losers.