Disagreements over Medicaid funding

The House Subcommittee on Health met to discuss a bill sponsored by Rep. Frank Pallone (D-N.J.) that would increase federal funding given to states for Medicaid. According to Rep. Pallone, over 60 million Americans currently rely on Medicaid for their health care. Pallone said fiscal pressure on states, coupled with the state of the economy, is causing more Americans to seek Medicaid’s assistance. By protecting Medicaid, Pallone said Congress would be protecting Americans’ access to medical care while securing jobs in health care nationwide.

Pallone said his bill is similar to an economic stimulus plan put forth by the Republican Congress in 2003 and signed by President Bush. Both legislation call for temporary increases in funding that help prevent states from cutting Medicaid services and creates the possibility of states reinstating abandoned programs. Democrats on the subcommittee, concerned over health care accessibility and declines in a faltering economy, expressed their desire to retain social services for low-income Americans.

Rep. Michael Burgess (R-Texas) criticized the actions of Pallone’s bill. He said 40 states experienced budget shortfalls when Congress increased Medicaid allocations in fiscal year 2003, contrasting that number with the 29 states that face budget short falls in fiscal year 2008. Burgess said the subcommittee is failing to address critical energy issues.

In an effort to reform Medicaid funding, James Frogue of the Center for Health Transformation advocated using the internet to make states more accountable for their spending. Frogue cited a New York Times article that called 40 percent of Medicaid claims in New York State into question. Frogue said Congress should verify that states are using funds responsibly prior to allocating additional funds.