Say no to Medicaid reform amendments

To cover a projected $2.7 billion increase in Medicaid program expenses for fiscal year 2013 that starts July 1, the Senate is proposing a Medicaid Reform bill SB 2840 in the form of a 474-page amendment. While elements of the bill have merit, legislators should oppose the amendments to SB 2840.

The legislation would implement the expanded Obamacare Medicaid provisions two years early with eligibility requirements above the existing federal poverty level. Why are legislators acting now when the Supreme Court will be ruling on Obamacare on or before June 15?

To help cover Medicaid program costs a $1-per-pack cigarette tax or possibly a broader tobacco tax is proposed. While a tobacco tax has some merit, it risks some unintended consequences possibly impacting a $1.5 billion tobacco bond. The state issued 17-year tobacco bonds at the end of 2010. Tobacco companies are making annual payments to states including Illinois based on cigarette consumption. With consumption declining 4.3 percent over the past five years states borrowing against these future proceeds risk declining income to pay down the bonds. Will a $1-per-pack tax to help cover Medicare have the unintended consequences of triggering a bond default?

Structural changes in the Medicaid program like data analytics, transparency tools and low global-cost providers for nonemergency health services as proposed by the Illinois Policy Institute need to be incorporated in Medicaid reform legislation.

Medicaid is a costly program and introducing 474 pages of legislation 10 days before the General Assembly’s spring session ends is irresponsible. Oppose the legislation, especially House Committee Amendment No. 3 and call for well crafted reform that includes public hearings to solicit input from both program participants as well as taxpayers.

Mike Tennis

Sleepy Hollow