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January 7, 2010 – Today, Nebraska’s Senator Ben Nelson said he’s working with Senate leaders and others to change the pending health reform legislation to treat all states the same concerning its unfunded federal mandate on states for expanding Medicaid.
“As a former governor, I’ve long fought against unfunded federal mandates, which force Washington rules on states with little or no money to pay for them,” said Senator Nelson. The current health care bill has an unfunded mandate for expanding Medicaid. While helping more Americans obtain health coverage is important, this mandate could burden state budgets in uncertain economic times ahead.
“I’ve been in serious discussions with Senate leaders and others to secure changes in the bill to treat all states equally,” Nelson added. “At the end of the day, whatever Nebraska gets will apply to all states.”
Among options Nelson has discussed would be for the House and Senate conference committee to change the legislation to provide full federal funding of the Medicaid costs for all states, or allow every state the ability to opt out of the expense they’ll begin to pay in 2017.
“My view is: either fund it or un-mandate it,” Senator Nelson said.
The Senate-passed health reform provides full federal funding for expanding Medicaid to 2017. Then, states will be required to pick up a share of the costs. In mid-December, Nelson had sought in negotiations with Senate leaders for all states to be allowed to opt out of paying the expense for the program beginning in 2017.
In the absence of a fiscal analysis from the Congressional Budget Office, Senate leaders added a provision exempting Nebraska from paying the additional funds as a result of the bill.
Nelson said that was a placeholder that now enables the House and Senate conference to address the unfunded mandate issue and work out fair and equal treatment for every state on paying the costs of the Medicaid expansion.
“My intent has been and remains absolutely clear,” Nelson said. “Every state should be, and will be, treated the same.”
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