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With a resounding thud, Senator Max Baucus (D-United Health Group) shared with us the results of months and months of toil in the bipartisan vineyards. And what did he come up with for his troubles? A plan that evidently no one - including so-called GOP "moderates" - can support. So what does this plan that only Sen. Baucus, his loved ones, and staff will support actually accomplish? "Cost savings" that are, in effect, a federal subsidy to private insurers while he foists more costs on the states through expanded Medicaid.
There are many reasons why the Baucus plan would be a fiasco if it actually had any chance of passage, but you can find those tomorrow morning in any newspaper - well, maybe not the Union-Leader, but any sane newspaper. So I'm going to stick to the effect it would have here at home in New Hampshire.
Annually, New Hampshire spends about $1.3 billion to match Medicaid funding from the federal government. That's about 15% of the annual budget. After closely watching Senator Baucus's press conference today, a statistic jumped out at me. In answer to a question from the press, Sen. Baucus offered that the average increase to states in their FMAP (medicaid) liabilities would only be about 8.9%.
This caused me spit out my lunchtime Sprite. Doing the numbers quick and dirty in my head, I thought "...wow, that will be real money..." - a suspicion confirmed when I crunched the numbers back at my office. The Baucus plan would, using the senator's own numbers, add $100 million to New Hampshire's budget liability annually.
Efforts among the beltway types to be bipartisan could cost us dearly. It is little surprise that the CBO scoring for this bill came in under the ones generated by the other four Congressional committees. Sending the bill for health care to the states would naturally trim the bottom line.