The National Debt

Capito Expresses Disappointment with End Product of Health Care Debate

WASHINGTON—Rep. Shelley Moore Capito, R-W.Va., today expressed deep disappointment over the passage of the government take-over of health care in the House of Representatives, saying:

“Tonight was a missed opportunity for Congress to heed the wishes of the American people and produce a bipartisan solution to the health care challenges faced by this nation. We know that Americans want health care reform, but this bill is not what they’re asking for.

“For the last year, I have promoted common sense reforms like enacting meaningful medical liability reform, allowing Americans to buy insurance across state lines and promoting wellness and prevention. These simple solutions could have brought down skyrocketing costs and expanded access to health care for more Americans.

“Instead, Congress has once again favored backroom deals over transparency, espoused big government over small businesses and chosen tax hikes over spending cuts. These decisions only further cement the American people’s sentiments that Congress is tone deaf and disconnected from the challenges faced by everyday Americans.

“Rather than pushing this legislation through Congress in spite of the American people’s wishes, the Congress should have gone back to the drawing board. A person’s health is not a partisan issue and the solutions for health care reform should include ideas from both sides of the aisle. The people of West Virginia deserve better.”

Congresswoman Capito on the Health Care Bill

Remember the Federalists

In the 1790s the Federalist Party had a secure grip on power. People associated them with the Constitution, George Washington, security, and prosperity. As late as 1796 they dominated elections to the presidency and Congress. How did they lose power by 1800?

Much of the reason lies in the passage of the Sedition Act. Sedition is the criminalization of attacks on the government. If the government decides that the origin is either satirical or untrue (in the 1798 version anyway) it can move towards prosecuting the writer, cartoonist, or speaker. Many Federalists enthusiastically backed this act despite its blatant violation of the Constitution. John Marshall, a Virginia Federalist, argued against it and it shocked, scared, and angered the opposition Democratic-Republican Party.

Thomas Jefferson and James Madison from Virginia feared that the anger stirred up by this act could cause a civil war. Perhaps many Federalists, publicly or privately, supported this as a way to finally get a virulent press off their backs. However the people saw it as an attack on liberty and the natural right to speak freely, even in dissent, about government. Jefferson and Madison tried to assuage the people by penning the Virginia and Kentucky Resolutions that asserted the right of state courts to declare federal laws unconstitutional.

Voters punished the Federalists by expelling them from power in 1800. They found themselves loathed as aspiring tyrants and their party disintegrated by 1815. Its most promising leaders, such as John Quincy Adams, left to join the Democratic-Republicans to escape the tarnish.

Democrats need to look very hard at history before they vote for unpopular expenditures and expansion of federal power. It might not mean simply their loss of power, but perhaps the destruction of a venerable institution that has contributed much to the national discussion over the centuries. Kowtowing to an authoritarian left wing element just because it currently has authority will not help moderate Democrats in the long run. Tyrants never last. Remember the motto of Madison and Jefferson's home commonwealth: Sic Semper Tyrannis

March Madness

Senators Oppose Passing Legislation with the Nuclear Option in the Senate

The Nuclear Option is passing legislation in the Senate with only 51 votes. Senators oppose it as a power grab. Listen to them in their own words.

What Now on the Health Bill? We Have Not Won Yet.

In 1941 after Japanese planes levelled Pearl Harbor and their Emperor declared war on the United States. Winston Churchill's initial reaction was "So we have won after all." Like Churchill in those dark days, those who believe in freedom, limited government, and lower taxes have reason for cautious optimism, but definitely not certainty. There is no historical inevitability to the momentum here, either against left wing socialized health care or reducing or eliminating Democratic majorities. Up until now we have relied very heavily upon the incompetence and arrogance of Obama, Pelosi, and Reid. Now Republicans have to step up and give the country an alternative.

Scott Brown in his acceptance speech did what he had done for his entire campaign, speak bluntly. Some conservatives do not like that he supports reform of the system, but the fact is that something must be done to stem rising costs. Republicans should seize the opportunity to work with the public and craft an alternative that is not costly, does not raise taxes, and does not fine or jail individuals for the choices they make. Many have floated ideas on tort reform, portability, small business pools and other ideas. Time to put them together and take a comprehensive alternative plan to the public.

On other issues we need to start attacking Obama and his executive branch assumption of power. Through regulatory law, executive orders, and special appointments he has avoided congressional oversight of his activities and appointments. Republicans need to attack this centralizing of power around the president and restore not only the balance between the branches of the federal government, but also between the feds, the states, and the people.

That all being said, our main priority is electing people who stand for our principles and who will not forget them while in office. Sure it is easier to make a name by spending taxpayer money, but the voters want accountability. They want to limit, not expand the government. If Massachusetts wants smaller government, what state doesn't?

Did Scott Brown's Election Save Highland Arts Unlimited's Funding?

Okay, Scott Brown winning in Massachusetts being the savior of our local Highland Arts Unlimited's state funding might be a stretch of logic. However, health care deform as currently proposed by Congress could eliminate state funding for these kinds of programs.

The West Virginia State Constitution, unlike its federal counterpart, requires that the budget be balanced every year. We cannot go into debt. That is a pretty good idea that Congress may want to consider someday.

Health care deform, Obama and Pelosi style, will require that the State of West Virginia pick up the tab on hundreds of millions of dollars worth of medical care coverage for the elderly. It is yet another unfunded mandate where Congress tells a state they must do this or that, then declines to send money. In this case they cannot send money because thei idea is extremely expensive and they have already given much of the cash to ACORN anyway.

West Virginia, one of a very few states meeting all its obligations with a surplus to boot, would have to take on this massive new cost. Since we are overtaxed already, funding cuts to non essential programs would be necessary. Bye bye to other things such as state employee raises, including teachers. Health care deform as advocated by the left wing powers that be not only bankrupts the federal government and raises our taxes, it hurts everything.

Scott Brown's election proves that even many liberals hate health care deform and are suspicious of Obama and Reid. Hopefully it forces a complete reconsideration of this issue. Few people recall that Medicare took many years to create. The left wants to put a more massive program together in the space of one year, rushing it out the door after secret meetings, leaving states, companies, and individuals paying the bill for decades to come. Brown's election, hopefully, sends a message by conservatives and liberals that this monstrosity cannot pass as is.

And if that happens, West Virginia's budget will not be busted. And we can keep funding these programs that help brighten our community.

Scott Brown: the Latest Name to Keep Democrats Awake A Nights

Who woulda thunk it? The seat christened by Democrats as "Ted Kennedy's" as if by feudal right may fall to the Republican Scott Brown today.

Kennedy in his last few years dedicated himself to getting a socialist or semi-socialist health care system passed in the United States. He already achieved his goal of promoting endlessly expanding federal intervention into the educational system (much to the ire of almost every teacher.) Democrats sought to make his death a catalyst for their ideas passing into law.

The most liberal state in the Union may be about to say no. Brown ran a strictly conservative campaign squarely against federal level health care deform. Massachusetts already has their own system, thank you very much. Why should they pay again for people in other states? Good question! Why should they saddle themselves with billions of dollars more in costs that the federal government will provide zero help to cover? Obama talks about savings(that do not exist), but declines to mention that state taxpayers will pick up much of the tab left unpaid by federal taxes. Brown proves that the plan has failed to even get support among the most liberal electorate in America.

If Brown wins, Democrats will try to circumvent Senate rules and push their deformed monstrosity through anyway. They know that this issue has tarnished their brand and made a mockery of all their claims to support transparent government. Even if Brown loses, it demonstrates that conservative momentum is still picking up and that Democrats not willing to commit political hari-kari over this issue have just cause for concern next November. Alan Mollohan, perhaps to the consternation of Democrats at this point, has decided to file for re-election. Republicans in the first district, contrary to usual political convention, would probably have a more difficult time against a more conservative Democratic newcomer than an established Obama/Pelosi supporter. Against Mollohan they can fire away at associations between him and the extremely unpopular speaker for months and gain tremendous support.

This month it comes back to Scott Brown. We hope that the Massachusetts voters can step up and demand the kind of change that favors voters and their interests, not taxing and giving away. They rebelled against unfair taxation once before and started a nationwide revolution. They can do it again today.

Capito Floored by W.Va. Report on Health Bill’s Cost to State

State DHHR Estimates Hundreds of Millions in New Costs for West Virginia Taxpayers

WASHINGTON – West Virginia taxpayers could face hundreds of millions of dollars in additional costs under federal health care legislation according to new tallies from officials at the West Virginia Department of Health and Human Resources (DHHR). The new figures were included in a response to a request from Rep. Shelley Moore Capito, R-W.Va., for an official estimate on how federal health care legislation’s expansion of Medicaid would impact the state budget.

The results are in and they’re not pretty. DHHR officials suggest that West Virginians could face at least $147 million or as much as $725 million in new costs under legislation approved by the Senate and House respectively.

“I’m completely floored by these numbers,” said Capito. “For a program that’s already bending under the prospect of huge deficits, this legislation will break it in half. I simply don’t know how our state can absorb such a massive new liability. State budgets are busting across the nation, and now Congress – under the guise of health reform – is asking them to add hundreds of millions of dollars in new costs. It’s irresponsible and it’s not sustainable.”

“We’ve already seen Nebraska exempted from this new burden, and now we know why,” she added. “How can we ask West Virginians to stand by and accept such an unfunded mandate?”

Capito made her request to the administration of Governor Joe Manchin, D-W.Va., in November, raising concerns about how expanding Medicaid – a program jointly funded by federal and state dollars – could force the state to raise new taxes or make cuts in services to come up with the funding.

Supporters of the Democratic health care bills often argue that expanding Medicaid will lead to cost savings from uncompensated care, but DHHR officials took such savings into account in their estimates and still project enormous new costs for West Virginia. If those savings aren’t realized, new taxpayer costs could balloon to more than $857 million.

“I know Secretary Hardy and her team have worked hard to come up with these estimates, and I applaud their hard work,” said Capito. “Yet these numbers must serve as a wake-up call to Democratic leaders in Congress. West Virginia taxpayers simply can’t afford to foot the bill for the Democrat plan.”

Healthcare Experiment

Ray Stevens - We The People

Capito Wants Final Health Discussions Televised By C-SPAN

Congresswoman Supports Request from C-SPAN Officials

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., is urging the Democratic congressional leadership to consent to a request from C-SPAN officials that all final health care negotiations be available for live broadcast to the American people.

“We’re talking about legislation that will immensely change the make-up of our nation’s health care system,” said Capito. “It should follow that West Virginia families have an opportunity to watch as such meaningful negotiations unfold.”

“The President himself once said that health care discussions should be open to the public and aired on C-SPAN. So it is only appropriate that the American people would expect such a promise to be honored.”

Officials at the congress-focused cable news network recently sent a letter to congressional leaders requesting the opportunity to provide coverage of all forthcoming health care negotiations “LIVE and in their entirety.”

C-SPAN’s appeal for transparency, however, comes as top congressional Democrats have indicated that they will exclude Republicans from final health care talks.

Noting her frustration with these developments, Capito suggested that the American people deserve a more open and fair process.

“When we should be looking to find common ground and work together, instead we’re seeing more of the backroom, closed-door partisanship that has marked the entire health care debate,” she said.

“This isn’t what West Virginians expect from their elected leaders and I urge the Speaker and Majority Leader Reid to agree to C-SPAN’s very reasonable request.”

Government Run Healthcare Just Beyond Your Fingertips

Is This Really Compromise?

Senate Bill Still Cuts Hundreds of Billions from Medicare, Leaves West Virginians to Pay for Sweetheart Deals to Other States

CHARLESTON - As the United States Senate works frantically to meet its arbitrary Christmas deadline on "health care reform,” it appears that Majority Leader Reid has resorted to backroom deal-making in order to gather the necessary 60 votes on legislation that remains unpopular with the American people.

Media reports suggest that Vermont, Nebraska and Massachusetts may get exemptions that subsidize the expansion of Medicaid, while Florida, Pennsylvania and New York will be exempted from major cuts to Medicare Advantage. As most states (including West Virginia) shell out millions in tax dollars to fund new Medicaid recipients and seniors across the country see their Medicare Advantage benefits dry up, these exempted states will be shielded from the impacts of the Senate bill.

"These exemptions strike me as blatant admission by Democratic leadership that major components of this bill are a bad deal for states and a bad deal for seniors," said Capito. "What should have been an open process of give and take appears to have degenerated into a series of sweetheart deals for some states that leave the rest of us to pick up the tab."

Earlier this year, Capito wrote to the West Virginia Department of Health and Human Resources regarding the budgetary impact of expanding Medicaid. In a letter to the secretary, Capito noted that - after a short-term grace period - states would have to pick up a significantly larger share of the Medicaid burden, which could mean new taxes or more budget cuts.

She has also raised concerns about severe cuts to Medicare which threatens to alter coverage for thousands of West Virginia seniors.

"On top of $56 billion in cuts to home health care and $143 billion in across the board cuts to Medicare providers, by gutting Medicare Advantage the Speaker's bill blatantly breaks the President's promise that if you like your current plan you can keep it," Capito said in November after the House passed their version of the health care bill.

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The Price of “Reform”
Some States Get Special Treatment Under Democrats’ Bill – But Not West Virginia

Politico: Reid Holds Caucus Together One Vote at a Time: “Reid was able to hold his caucus together, in part, by writing state-specific provisions that won over senators, one vote at a time. Nebraska, Vermont and Massachusetts scored $1.2 billion in special Medicaid assistance. Nelson got something for Nebraska the other states didn’t — a permanent exemption from increased state costs for new patients that come into Medicaid through the plan. Montana, North Dakota, South Dakota, Utah and Wyoming secured higher federal reimbursement rates for doctors and hospitals that serve Medicare patients. Senior citizens in Florida, Pennsylvania and New York will see their Medicare Advantage benefits protected at a time when the program will be trimmed nationwide.” (Politico, December 21, 2009)

Wall Street Journal: Change Nobody Believes In: “…Others got hush money, namely Nebraska's Ben Nelson. Even liberal Governors have been howling for months about ObamaCare's unfunded spending mandates: Other budget priorities like education will be crowded out when about 21% of the U.S. population is on Medicaid, the joint state-federal program intended for the poor. Nebraska Governor Dave Heineman calculates that ObamaCare will result in $2.5 billion in new costs for his state that "will be passed on to citizens through direct or indirect taxes and fees," as he put it in a letter to his state's junior Senator. So in addition to abortion restrictions, Mr. Nelson won the concession that Congress will pay for 100% of Nebraska Medicaid expansions into perpetuity. His capitulation ought to cost him his political career, but more to the point, what about the other states that don't have a Senator who's the 60th vote for ObamaCare? (WSJ Editorial, December 21, 2009)

Washington Post: ‘Cash for Cloture:’ “Indeed, the proliferation of deals has outpaced the ability of Capitol Hill cynics to name them. Gator Aid: Sen. Bill Nelson (D-Fla.) inserted a grandfather clause that would allow Floridians to preserve their pricey Medicare Advantage program. Handout Montana: Sen. Max Baucus (D-Mont.) secured Medicare coverage for anybody exposed to asbestos -- as long as they worked in a mine in Libby, Mont. Iowa Pork and Omaha Prime Cuts: Sen. Tom Harkin (D-Iowa) won more Medicare money for low-volume hospitals of the sort commonly found in Iowa, while Nebraska's Nelson won a "carve out" provision that would reduce fees for Mutual of Omaha and other Nebraska insurers.” (Washington Post, Dana Milbank Column, December 22, 2009)

Capito Opposes House Effort to Blow Another $210 Billion Hole in Budget

Congresswoman Criticizes Democrat’s ‘Doc Fix’ as Latest Example of Budget-Busting Policies

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement today as the House of Representatives considered the so-called ‘doc-fix’ which will add yet another $210 billion to the deficit:

“In what’s becoming an incredibly troubling pattern, the House today again voted to add hundreds of billions of dollars to the deficit,” said Capito. “I suppose after spending $1.3 trillion on a health plan, $700 billion to bailout Wall Street and $787 billion on a failed stimulus package, that $210 billion may not seem like much – but I don’t think that’s how the American people see it.

“I firmly believe that we need to reform the Medicare payment structure, but we should be paying for it up front rather than shouldering our children with billions of dollars in debt.”

What Others Are Saying…

Washington Post: A $300 Billion Deception: “…the House of Representatives is poised this week to blow a quarter-trillion-dollar hole in the federal budget involving, you guessed it, health care…. By the way, don't be fooled by the incredible shrinking "cost" of the fix. The official Congressional Budget Office estimate used to be $245 billion over 10 years. Now it's $210 billion. In fact, the real hit to the budget will be closer to $300 billion…. All of this is, to some degree, Medicare kabuki to placate the American Medical Association… Finding the money to pay for the fix and, more to the point, cobbling together the political coalition to support it, is difficult. Which is why Congress and the administration have joined hands in the pretense that the doc fix has nothing whatsoever to do with health reform.” (Washington Post Editorial, November 15, 2009).

WSJ: The $1.9 Trillion Gimmick: “The "doc fix" was originally part of ObamaCare, until Mrs. Pelosi realized that adding a quarter-trillion dollars to the total tab made it difficult to pretend the bill would reduce the deficit. In the "Fiscal Responsibility" section of the press release announcing the separate SGR package, Democrats insist that it will be subject to "the 'pay as you go' principle of budget discipline," which "requires Congress to find a way to pay for any new spending" with new taxes or cuts. The Comedy Central punchline: "A previous Congress established the policy for paying Medicare doctors, so the update for 2010 is not a new policy to be paid for. . . . The Medicare Physician Payment Reform Act would not increase total payments to physicians above what they are today and therefore, would not be subject to the paygo requirement." In other words, under the Madoff school of accounting, Democrats rely on straight deficit spending.” (Wall Street Journal Editorial, November 18, 2009).

Wednesday, November 18, 2009 - Help Stop Obamacare Now!

Today in Charleston, Joe Manchin, Democrat members of the Legislature, Democrat staffers and Democrat congressional aides will gather to celebrate Senator Byrd becoming the longest serving Congressional member in U.S. history. It is also widely rumored that Senator Byrd himself is planning on attending. But while Democrats party under the dome at the state capitol a defining moment is coming to Washington in this year's health care debate.

Yesterday, Democrat leaders announced they will bring Harry Reid's new health care bill to the Senate floor in an effort to grant the President's Christmas wish for a government takeover of our nation's health care before the end of the year. This is in spite of the fact that no Senator has ever even seen Reid's new bill. It was written in secret behind locked doors by Harry Reid's personal staffers. Reid even hinted he may rush to a vote before the bill's been public for 72 hours, as even some Democrats have demanded.

To begin debate on this new version of Obamacare, Reid will play a shell game. He needs 60 senators to "vote to proceed" to an unrelated piece of legislation, and once he clears that hurdle he will strike that bill's text and insert his new health care bill. But don't be fooled by Democrat senators that say they oppose a government takeover but just wanted to allow debate on health care, they are not being honest.

The simple fact is this: Any senator that votes to proceed to the Reid-Obama bill is voting for a government takeover of your health care.

Call Senators Rockefeller and Byrd's offices right now and demand that they vote against the motion to proceed.

Senator Jay Rockefeller - (202) 224-6472
Senator Robert Byrd - (202) 224-3954

Or show up today at 3 p.m. in front of the Senator Byrd's statue on the second floor Rotunda of the State Capitol and ask Byrd in person not to support Harry Reid's undemocratic parliamentary maneuver "to proceed"

Don't allow Democrats to stick together on the vote to prceed and then allow some vulnerable Democrats to vote against final passage of the bill and claim they tried to stop it. Senators who say they just want to allow for debate are trying to deceive their voters while giving President Obama the crucial votes he needs to pass a government takeover of health care.

Voters should be watching and remember who stands up for their freedom and who stands with the special interests who want to ram through this takeover.

Democrats have now offered 5 different versions of Obamacare (the first House bill, the second House bill, the Senate Finance bill, the Senate HELP bill, and now Reid's bill). And despite the nuances, every Democrat bill we've seen puts Washington in control of health care, slashes Medicare coverage for seniors, raises premiums for families, raises taxes, places bureaucrats between patients and doctors, punishes young adults who choose not to buy coverage, and opens the door to government rationing of care.

We know the Reid plan will be more of the same and cannot be fixed by a few amendments on the Senate floor. The attempt to give Washington control over one-sixth of our economy is rotten to its core. And any improvements made to the bill will be a mirage that will vanish as soon as the bill goes behind closed doors in conference with the Pelosi bill.

Americans have loudly and repeatedly rejected the President's government takeover of health care. It's time to for the Democrats to listen, stop the shell games, and start over with real solutions that will provide every American the opportunity to afford, own and keep a health care plan that best meets their needs. We can have a real debate about common sense solutions, but only if we first stop this government takeover. And we can stop this bill if we let Democrats know they'll be held accountable for their vote next November.

Don't let them vote for a government takeover of health care before they vote against it. The "vote to proceed" to Obamacare may be one of the most important votes any Senator takes.

Make sure that Senator Byrd and Rockefeller both know that we are watching and that we'll remember them partying in Charleston while their colleagues in Washington were enslaving generations of West Virginians in a government run health care system with long lines, rationing and sub-standard care.

(The Preceding is an Action Alert from the WVGOP)

Capito Joins Bipartisan House Coalition to Oppose Speaker Pelosi’s Trillion Dollar Health Plan

West Virginians Deserve Meaningful Health Reform, Not a Government Over-Reach That Will Raise Taxes and Slash Billions of Dollars From Medicare

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement this evening as the U.S. House of Representatives voted on Speaker Nancy Pelosi’s 2,000-page, trillion-dollar health reform plan that will raise taxes, raise premiums and cut hundreds of billions of dollars from Medicare:

“I have long-said that West Virginians deserve meaningful health care reform, but this bill is not the bipartisan consensus-building legislation that my constituents have asked for,” said Capito.

“Legislation that touches every single American and would reform nearly one-sixth of our economy demands transparency and consensus. Unfortunately, the Speaker and our friends on the other side of the aisle chose to openly reject any semblance of bipartisanship in favor of a bill that will cost well over a trillion dollars, raise taxes on job-creating small businesses and cut nearly $400 billion from Medicare and Medicaid.”

“On top of $56 billion in cuts to home health care and $143 billion in across the board cuts to Medicare providers, by gutting Medicare Advantage the Speaker’s bill blatantly breaks the President’s promise that if you like your current plan you can keep it.”

“And as this economy continues to sputter under a stimulus plan that has failed to result in real job growth, the last thing small businesses need is yet another tax hike.”

“We can do better than this troubling government over-reach and I urge the Speaker and her colleagues to start over and come clean on their promise for a reasonable dialogue about how we can find common ground.”

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What West Virginians Are Saying About the Speaker’s Bill…

State Journal Editorial: Congress’ Overreach: Health Care Reform: “The American people are seeing their elected representatives in Washington ponder the future of health care. It's not a confidence-inspiring exercise. First, polls say most Americans do not want government involved in their personal medical decisions…. What we have is a battle between those who believe in the merits of big government -- with its attendant big costs -- and those who believe in the promise of the American marketplace.” (State Journal Editorial, November 5, 2009)

Hoppy Kercheval: House Health Bill a Trillion Dollar Mistake: “A bad headache doesn’t usually require brain surgery, yet that’s the approach the Democratic leaders in the U.S. House of Representatives are preparing to take with their health care reform bill. The House plan will unleash the biggest, most expensive government takeover of the health care delivery system since the creation of Medicare. …the current system needs reform, but the House Democrats should put down the scalpel and see if there is a less traumatic way to treat the patient.” (Hoppy Kercheval Commentary, November 6, 2009)

Daily Mail Editorial: Liberal’s Health Plan is No Plan at All: “Liberals' "solution" would cost more than $1 trillion over 10 years, with subsidies and taxes all around. All Americans would have to have insurance by 2013 or pay fines. Most employers would have to offer insurance or pay taxes, a provision sure to kill jobs. There would be billions for a government health plan, billions in new taxes on health insurance and medical devices, and new taxes on "the rich." Yet this complicated, intrusive, expensive approach would not cut health costs. With Americans' economic future on the rocks, many members of both parties doubt this is the way to go.” (Daily Mail Editorial, November 4, 2009)

Wheeling Intelligencer on Speaker Pelosi Health Bill: The Speaker’s bill “…would limit Americans' choices in regard to health insurance - and treatment. It would slash Medicare funding, to the detriment of senior citizens. It would send the already astronomical national debt skyrocketing…. It would increase taxes and health care insurance costs for millions of Americans.” (Wheeling Intelligencer Editorial, November 7, 2009)

11/7/2009 - Rep. Capito Discusses Health Care During Debate on Pelosi Health Bill

Capito Asks W.Va. Health and Human Resources for Estimate of How Speaker’s Medicaid Changes Will Impact State Budgets

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement this afternoon regarding her letter to West Virginia’s Department of Health and Human Resources seeking clarification on the impact Speaker Nancy Pelosi’s health bill will have on the state budget:

“States across our nation are facing the prospect of budget cuts and difficult financial choices,” said Capito. “West Virginia is no different, and I remain concerned that the health bill under consideration in the House may make these financial challenges even more difficult with an unfunded Medicaid mandate.”

“While we all support the goal of covering uninsured Americans, the Speaker’s move to expand Medicaid stands to shift hundreds of millions of dollars in costs to financially-strapped states. I believe it’s critical that we understand the additional price tag West Virginia taxpayers may face as a result of this legislation.”

*** Full text of the congresswoman’s letter can be found below. ***

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November 6, 2009

Ms. Patsy A. Hardy
Secretary

West Virginia Department of Health & Human Resources
State Capitol Complex, Building 3 Room 206
Charleston, West Virginia 25305

Dear Secretary Hardy:

As Congress prepares to conclude debate on House Speaker Nancy Pelosi’s plan to reform our nation’s health care system, I believe it is critical that we understand how her plan could impact budgets at the state level, including in West Virginia.

As currently written, H.R. 3962 – the Affordable Health Care for America Act – demands that each state increase Medicaid enrollment levels to 150% of the federal poverty level. In turn, H.R. 3962 proposes that the federal government cover this cost for the first two years, but beginning in 2015 the state of West Virginia would be required to cover nearly 10% of this increase. This could lead to a troubling unfunded mandate for state governments.

The National Conference of State Legislatures estimates that increasing Medicaid eligibility to 133% of the federal poverty level, while capping the FMAP at 95% would add $178 million to West Virginia’s state budget in 2014-2019. Given these numbers, it appears that a further expansion of eligibility to 150% of the federal poverty level, along with a lower federal compensation rate could lead to a significant burden on our state budget. For this reason, I write seeking your estimate of how these projected obligations would impact the state of West Virginia.

Thank you for your commitment to the people of West Virginia, and I look forward to hearing from you on this matter.

Sincerely,

Shelley Moore Capito, M.C.