Manage Medicaid

The Department of Human Services needs to stop handling our Medicaid cards like candy canes at Christmas. Instead, it needs to start managing its spending. The governor needs to rein in Medicaid and DHS before it completely overwhelms the rest of the state budget.

Today, DHS spends $1 million a week over budget. Instead of bringing Medicaid spending under control, the governor is willing to increase tuition at the University of Maine by up to $960 per year. That’s right – a college degree from UMaine could be $4,000 more expensive Where are our priorities?

We have 163,000 Mainers with a college degree, but as of today we have 241,000 on Medicaid. The current governor and Democratic majorities in the Legislature have made their priorities clear. Since John Baldacci took office in January another 22,000 Mainers have been signed up for Medicaid. Shouldn’t we be trying to get another 22,000 Mainers to go to college? Or maybe helping our small businesses create 22,000 new jobs by reducing workers’ compensation, cutting taxes and repealing burdensome regulation? What will create an economically vibrant Maine – more people on Medicaid or a highly educated, skilled work force?

In this last budget, Medicaid received a $45 million increase, while higher education got no increase. Again, let’s reward a social program and punish our future. Medicaid is a critical safety net for the poor, elderly and disabled. There needs to be a balance. The under-budgeted expansion of Medicaid puts the entire program at risk. Apparently, $45 million in extra money isn’t enough. Just for this year, DHS employees said it needs another $113 million because it can’t survive on the $517 million it receives so far.

Let’s see, DHS is getting an 8 percent increase ($45 million) next year, but now it says it needs another 22 percent increase this year. Baldacci is floating the suggestion that DHS will need more than a $100 million increase (yet another 18 percent) beginning next July.

Medicaid is out of control. Drastic, effective action must be taken now. Medicaid must not be allowed to consume our entire state budget and doom our state’s future. As a member of the Health and Human Services Committee with oversight over DHS, I implore the governor to accept responsibility and take the following actions: First, engage an experienced, outside management team to assist in managing DHS because clearly no one currently is. Second, reinstitute the DHS hiring freeze – the last thing we need is more people writing DHS checks and spending taxpayer money. Third, use the available $53 million in federal Medicaid relief money to cover this shortfall and don’t punish college students or give them another reason to leave Maine after graduation.

Lastly, be honest by dealing with the entire two-year, $200 million DHS spending problem, not just quietly admitting to the $113 million covering the next seven months. I ask the governor and our Democratic colleagues to realign their priorities. Let’s work toward a Maine where more people are becoming highly educated, skilled workers, not Medicaid card holders.

Sen. Carol Weston, R-Waldo County, is a member of the Health and Human Services Committee.