Health and Human Services Committee Home

July 20, 2009

Dear Chairman Baucus and Senator Grassley:

Governors believe that reform of health care is critical to our nation’s economic future.  We also are steadfastly opposed to unfunded federal mandates and reforms that simply shift costs to states.  The House has proposed providing permanent funding for its mandated Medicaid expansions.  We urge your committee to adopt a similar approach for its bill.

Any unfunded expansions would be particularly troubling given that states face budget shortfalls of over $200 billion over the next three years.  This gap persists even after the Recovery Act’s temporary increases in the federal share of Medicaid, which was essential for avoiding dramatic cuts to critical state services and was greatly appreciated by governors.

Governors welcome the opportunity to share and expand upon the innovative reforms we have instituted in our states to expand coverage, reduce cost and improve the quality of health care.  These reforms should inform congressional efforts and must be preserved and encouraged as part of any national reform. 

We appreciate your willingness to work with us to pursue financing options that are sustainable at both the federal and state levels.

Sincerely,