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Special Report: Eye on Health Care - PART III

Posted: Nov 17, 2011 7:02 PM by Marnee Banks (KXLH Helena)
Updated: Nov 24, 2011 9:12 AM


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HELENA- President Barack Obama signed the Affordable Care Act into law in March, 2010 and it's now one of the most politically charged issues the U.S. is facing. Montana's News Station is taking an in-depth look at the Act and how it's affecting Montana in a four-part series called "Eye on Health Care".

"Health care is an increasingly expensive part of state government," says Governor Brian Schweitzer (D - Montana).

Schweitzer also says the costs are going to continue to go up under the Affordable Care Act. That's why he says he is working to cut expenses in other parts of state government to prepare for the future.

The Affordable Care Act expands Medicaid to people making less than 138% of the federal poverty level.

There are currently about 105,000 Montanans are enrolled in Medicaid and the Department of Public Health & Human Services (DPHHS) estimates the Affordable Care Act will add another 82,000 Montanans to the rolls by 2019.

"Montana will actually increase the percentage of a population enrolled in Medicaid at the 2nd fastest rate in the country, only one other state will have a higher percentage of new enrollees in Medicaid. So when that financial bomb hits it's going to be very taxing on the people of Montana," says Schweitzer.

DPHHS estimates the new enrollees will cost Montana an additional $70 million in 2019.

Schweitzer is applying for a federal waiver so the state can operate its own universal health care system. He says it will help reduce state health care costs and ultimately lower health care costs for Montanans.

However, Montana Representative Chuck Hunter (D - Helena) says he doesn't believe the governor has the ability to do what he envisions without the Montana Legislature's approval.

"I think while this is a valuable discussion, I don't think the mechanics, in the way the government operates between the executive and legislative branches is do-able," says Hunter.

During the 2011 Legislative session the Montana Legislature failed to pass authorizing legislation for many parts of the Affordable Care Act: including establishing a state run health insurance exchange. Republicans wanted to stop all efforts to move the Act forward, and with majorities in both Houses they were successful.

Montana Senator Jason Priest (R - Red Lodge) carried several bills which attempted to stop the Affordable Care Act. Now that session is over Priest chairs the Children, Family, Health & Human Services committee. The committee oversees DPHHS.

Priest says dealing with the increase in Medicaid enrollees will be one of the most difficult budgetary decisions he will have to deal with.

"The people who wrote Obamacare view the number of people on the system as an achievement. They look at adding to the roles as an achievement. Whereas I have a very different view an achievement is creating an environment of job growth and prosperity where fewer people need your services. They see victory as more people on the system," says Priest.

Hunter says the Affordable Care Act is about providing health insurance for more Montanans, and the expansion of Medicaid does just that.

"I think going back to the reason that got us all here, the fact that we understand our current system is killing us economically and that we have to do something different in this country," says Hunter.

While Democrats and Republicans clash over whether or not the Affordable Care Act is good for Montana, they all agree it poses an incredible challenge in balancing the state's budget.

Priest says legislative staff is looking at ways to squeeze costs out of the Medicaid system so Montana can add the new enrollees.

"We are looking at Medicaid reform and we're looking around the United States for innovative policies for managing costs," says Priest.

However, Hunter says that isn't enough.

"There is some discussion in interim committees about the Medicaid system but I do not believe that any of those committees are looking specifically at the issue of what happens in 2019 when under the Affordable Care Act we are supposed to start paying for the increase in population," says Hunter.

Hunter says the Legislature failed in 2011 at giving Montana a say in how the Affordable Care Act would work here. He says by the time next session rolls around it'll be too late since most of the provisions in the law kick in starting in 2014.


Part 4 of "Eye on Health Care" looks at how Montana's three Congressional delegates are dealing with the Affordable Care Act, and what they see as pros and cons.

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