On
Election Day, Maine holds a popular vote on whether to expand
Medicaid. No other state has done that.
The
expansion would cover an estimated 70,000 people who don’t have
health insurance. The decision embodies two key elements of most
government actions: there’s no free lunch and nothing is decided
once and for all.
After
the Affordable Care Act was passed, the Supreme Court ruled that the
federal government could not force states to cover more people under
Medicaid, even when the feds paid about 90 percent of the cost. The
ACA would have withdrawn existing federal payments if states did not
accept expansion.
That
decision left it up to the states to decide on voluntarily accepting
expansion. Though 31 states plus D.C accepted, 19 did not. Maine
resisted expanding its Medicaid, called MaineCare, the only
northeastern state to reject increased coverage.
The
Maine Legislature voted six times to accept the expansion, but Gov.
LePage vetoed the bill each time. The issue comes to the voters
because of a citizen initiative, which could not be vetoed.
LePage
not only sees expansion as “welfare,” but dislikes its budget
impact. It would cost the state less than $55 million, and each
state dollar would bring $9.63 in federal dollars. Under the
non-controversial highway referendum, Question 3, each state dollar
would bring $1.10 from the feds.
Without
the expansion, people who would have been eligible must continue
getting haphazard medical care by relying on emergency rooms. The
cost of their care is rolled into hospital costs and recovered in
higher charges. Insurance premiums rise to handle the increases.
All
the money comes out of people’s pockets, but we have little idea
how much of the state spending would be offset by lower hospital
costs and insurance premiums. LePage looks at the state budget not
the individual’s wallet.
But
increasing the number of people with health insurance coverage
inevitably costs more. That’s why the ACA raised taxes on the
wealthy. Still, there’s no way to be sure just what the net cost
is.
So
the vote comes down to whether Mainers want to risk a higher net cost
to help more of their neighbors get better medical care. That is a
classic political decision, involved in every budget action in
Washington or state capitals.
Does
the community, through its government, want to pay more to do more?
If keeping the budget down is the highest priority, as it is for
LePage, then his answer is “no.” Now it’s up to voters to give
their answer.
This
kind of decision must be made over and over on everything done by any
government, from military spending to medical care. Only rarely do
the voters find themselves deciding the answer.
LePage
has another concern. Once Medicaid is expanded, how sure can we be
that the federal government will keep up its end of the bargain?
Perhaps years down the road, it will decide to change the funding
formula, leaving states to pick up more Medicaid costs.
To
avoid that risk, voters would have to turn down Medicaid expansion.
This a reasonable issue to consider.
It’s
like current proposals for tax “reform,” with cuts proposed that
would reach out at least 10 years. No Congress binds another on most
matters, so tax cuts could well be revoked sooner than promised.
In
a democracy, people get to change their minds, especially in changed
circumstances. If worry about possible change were allowed to
control, not much would happen.
Still,
it is worth worrying about programs like Social Security, Medicare
and Medicaid that weigh heavily in the budget, but whose costs are
driven by participant eligibility not budget priorities.
The
answer may not be to deny people help they need because of such
worries, but to address the underlying problem directly and
comprehensively. Touching these programs is considered the fatal
“third rail” of politics. Most likely, the only solution will
come from a nonpartisan effort.
When
benefit payments are guaranteed, providers and insurers may be
tempted to use the system to boost their revenues. What decisions
need to be made to limit the growth in costs?
Better
ways of determining eligibility and improved protection against
cheating is essential. But also essential would be some method of
regulating costs of quasi-monopoly health care. Now that repealing
the ACA has failed, it’s time for reform.
Maybe
that’s what critics will now accept. But much-needed health
insurance action should not use the ill, lacking insurance and access
to affordable medical care, as hostages to force reform.