Eliminating health coverage not an option

Last month, our state was shocked by news of President Bush’s decision to include four sites in Maine on his list to be considered by the Base Realignment and Closure (BRAC) Commission. Reaction at the Capitol in Augusta was no different and, overnight, all matters under deliberation by the Legislature were thrown into a state of uncertainty.

One of the most controversial elements of the recently passed two-year budget, selling revenue bonds worth $450 million to refinance the state’s debt and help balance our finances, quickly became a focal point of such uncertainty. Given the new circumstances, many, including Gov. Baldacci and myself, felt it imperative to eliminate the revenue bonding and instead balance the resulting $250 million gap in the budget through much more difficult means.

All options were laid on the table and within weeks the Appropriations Committee, of which I am a member, began deliberations anew on additional spending reduction proposals totaling more than $300 million. After much debate, Democrats and Republicans on the committee agreed on more than $120 million of cuts. Democrats decided the wisest course for our state was to fill the remaining gap by increasing revenues, primarily through an increased tax on tobacco products.

We did not come to this decision lightly, nor did we do it without first reviewing the alternatives. The details of those alternatives are staggering.

One proposal was to eliminate two programs under MaineCare, our state’s health insurance program for low-income, elderly and disabled citizens. Though the proposal would have reduced state expenditures by $79.5 million, it also would have resulted in 40,291 Mainers losing their health insurance. Worse still, since the program matches every $1 of state funds with $2 from the federal government, the total economic impact would have been an increase of $238.6 million of un-reimbursed care to Maine’s health care providers.

Another proposal was to eviscerate the governor’s major health insurance initiative for individuals and small businesses, the Dirigo Health Program, by withdrawing $32.5 million. The program is currently a success story, with more than 7,000 enrollees receiving high-quality, low-cost health insurance in only its first year. The reduction would have likely caused the program to collapse and its enrollees to lose all coverage.

While those alternatives would have generated savings of more than $112 million, they were not a wise choice for Maine. Health care is one of the most pressing priorities for working families in our state, and cutting all access to care for nearly 50,000 citizens in the name of budget balancing was too high a price for Democrats.

With 140,000 people already without insurance, increasing that number by a third overnight was not an option. With the uncertainty of the BRAC process still hanging over Maine, the need for a strong safety net is more important today than ever.

Jeremy Fischer represents Presque Isle in the Maine Legislature and serves on the Appropriations Committee.