Governor Brown sent a letter to the White House yesterday expressing his strong objections to proposed reductions to Medicaid. The proposed reductions, being discussed as part of a budget deal around the “debt ceiling” vote, would result in tremendous cost shifts to the state that would bring devastating harm to our safety-net.
Text of the Governor’s letter below:
June 27, 2011
The White House
Dear Mr. President:
I write to object strongly to two Medicaid budget reduction proposals under consideration by your administration: (I) curtailing or eliminating Medicaid provider taxes; and (2) creating a single, or blended, federal matching rate for Medicaid and the Children’s Health Insurance Program (CHIP) with a resulting reduction in federal financial participation.
Provider taxes are a critical source of revenue used by
The proposal to create a blended federal matching rate for Medicaid and CHIP cannot achieve the planned savings without a blatant cost shift to states.
California has enacted huge and extraordinarily painful spending cuts to close our multibillion dollar budget gap. We did our part to reduce state and federal Medicaid spending by eliminating optional benefits, reducing provider payments and requiring beneficiary cost sharing. However, none of our requests to implement these actions has yet been acted on by your administration.
The Medicaid reduction proposals you are now considering would not only cripple Califomia’s Medicaid program but would have disastrous ramifications for education, public safety and other critical state programs.
I thoroughly understand the need to address deficits at the state and federal level, but these proposals to shift several billion dollars in Medicaid costs to
Edmund G. Brown Jr.
cc: Secretary Kathleen Sebelius