Tuesday, October 9, 2012

Rep. Casey Guernsey -- Heartland Hospitals in St. Joseph to Lose $300,000 Annually to Obamacare

On June 28th, the United States Supreme Court upheld key provisions of Obamacare. As a result of a portion of the ruling, Missouri must decide how to implement a healthcare exchange. We've already seen the impact of Obamacare on Medicare with the major loss of dollars to our local hospitals as it came to light over the last month. For example, Heartland Hospital in St. Joe which provides healthcare for all of Northwest Missouri is slated to lose over $300,000 a year because of cuts to Medicare in Obamacare. That is why we must be deliberate and careful how we create an exchange.
So what does this mean for the future of healthcare in Missouri, and what are we going to do about it? Those questions are what makes 'Prop E' on the ballot in November so very important. This initiative, if passed, ensures that the legislature creates our state healthcare exchange - not the Governor. I believe this is fundamentally important because of the public debate and the deliberate, calculated committee process we use to write laws. It is always better when the public knows what is going on through lawmaking rather than an executive order by a Governor. The legislative process ensures accountability. We saw what Governor Nixon's intentions were this year as it relates to Obamacare when he snuck a $50 million Medicaid expansion line item in his budget. He was trying to begin implementation of Obamacare thru Medicaid expansion as our state healthcare exchange. Fortunately, we in the budget committee caught on to his scheme and tossed out his entire unbalanced budget. Not only did he try to cut higher education by 10%, but he was also trying to implement Obamacare without telling anyone! Now I hear on the radio he takes all kinds of credit for signing the legislature's balanced budget. It must be nice to be able to take credit for other people's hard work. I'm expecting a thank you note from the Governor any day now....

The most significant other aspect of this decision was that the Court ruled the federal government could not punish states which choose not to use Medicaid as the state's healthcare exchange. During the public debate concerning Obamacare, little attention was made to the tremendous cost shift from the U.S. government to Missouri provided in this law. In order to reduce the projected cost of this legislation, President Obama and Congress tried to mandate that Missouri pay a large portion of the additional cost associated with the expansion of Medicaid - the federal and state health insurance program for the poor. Even with this accounting trick, the projected cost of this legislation has sky rocketed since its passage. According to the nonpartisan Office of Management and Budget, the projected cost of Obamacare has tripled since its original adoption. TRIPLED, folks!! This is why Governor Nixon's attempt to use Medicaid as our exchange was so very wrong.
In Missouri, we estimate this law will cost Missouri taxpayers from $300 to $600 million in the first year if we accept it. Missouri has a general revenue budget of almost $7 Billion and can ill-afford this cost. Accepting such additional cost for Missouri would not be possible without drastic cuts in the budget or an increase of taxes. I certainly oppose an increase of taxes, particularly in these difficult economic times. In 2010, 71% of Missouri voters rejected Obamacare in a statewide vote on Proposition C. We need to see a similar percentage on Prop E, and I would strongly encourage everyone to support it. Writing a healthcare exchange will be incredibly important.  We have to get the best possible version and I truly believe this is only possible through the legislature.
It is an honor to serve as your Missouri State Representative, and I do appreciate your input on matters of importance to you, your family and community. Please feel free to contact me at 573-751-4285 or casey.guernsey@house.mo.gov. Thank you for taking an active role by voicing your opinions on our state and national governmental matters.

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