The Budget and Health Care
Governor Pawlenty has missed an important opportunity in the recently released budget for the upcoming biennium. This budget relies heavily on one time money to pay for ongoing expenses, contributing to a significant structural imbalance. The budget hits health care programs especially hard.
The Governor’s budget removes 113,000 people from state health care programs through FY11 just as layoffs are increasing and jobs become scarce. Even more people stand to lose health care if the Governor’s provider payment cuts reduce access and curtail prevention efforts. The budget eliminates dental, chiropractic, podiatry, and rehabilitation services for our most vulnerable adults. It also eliminates all MnCare coverage for adults without children.
The Health Care Access Fund is gutted as the plan transfers these dollars to the general fund. However, the tax paid by providers, our medical and dental professionals, and social workers will remain. When the tax dollars went to the underinsured or underserved, there was some buy-in by our health care professionals. Where is the incentive to pay into the Fund now?
Furthermore, cuts to health care jeopardize federal stimulus money with its Medical Assistance (MA) eligibility cuts. In addition, state dollars help leverage federal matching funds. Failure to provide state dollars means additional cuts to health care. Those responsibilities will be passed on to property taxpayers, increasing burdens on county governments, nonprofits, and hospitals.
We need long term solutions to this budget crisis. Fiscal responsibility, without making our health care problems worse, should be at the forefront of the budget discussion.