Emmer for Governor
June 24, 2010
1:35 PM
Anything that seems too good to be true probably is. This adage applies to those candidates who have committed to “opt in” to the early enrollment for medical assistance because we can access “free money” from the federal government. In response, I propose we stop trying to spend money we don't have and solve the state’s anticipated record budget deficit. In fact, our state will save almost a half a billion dollars over the next three years by not early-enrolling in Medicaid.
There are three very important reasons why we must not participate in early enrollment:
The state deficit for the next biennium will be $5–7 billion dollars. Early enrollment in Medicaid will add almost a half billion dollars of additional debt over the next three years. In a time when our state spending is out of control and threatening the prosperity of future generations, it is not responsible to spend what we do not have.
Incented by the prospect of $1.4 billion in federal money, eleven states were given the option of early enrollment before the federal deadline of 2014. Let us remember, however, that we have no guarantee that all promised federal money will be delivered; nor are we guaranteed that any federal dollars will be available beyond 2014. We must not incur substantial future financial liabilities without a plan in place for funding when the federal government withdraws federal dollars.
Minnesota has one of the best health care delivery systems in the world because we know how to innovate and deliver high quality care at lower costs than other states. Quality care at a low cost is the goal of our healthcare system. Minnesota receives only $0.72 of federal spending per each dollar of federal tax collected. Neighboring states such as South Dakota, North Dakota, and Iowa receive $1.53, $1.68 and $1.10 respectively. In effect, under the current federal reimbursement formula, Minnesota has become a “donor” to other states who are reimbursed for volume instead of quality and low cost. If Minnesota enrolls early, current federal reimbursement rules would continue to apply. Thus, opting in to the federal plan would only perpetuate Minnesota’s status as a “donor” state. Driving Minnesota into a one size fits all program managed with federal government rules will destroy innovation and lead to higher costs for our taxpayers.
Minnesota has a tradition of leading the way. The federal government should be looking to Minnesota as a model of innovation, not taking over our health care system and making it look and act like states that don’t do as well. An Emmer Administration will lead in real and responsible health care reform – not follow.
Prepared and paid for by
Tom Emmer for Governor
P.O. Box 14269
Saint Paul, MN 55114
(952) 562-2600