Governors Comment on Healthcare

The National Governors Association’s (NGA) www.nga.org Chair Virginia Governor Terry McAuliffe https://governor.virginia.gov, and Vice Chair Nevada Governor Brian Sandoval http://gov.nv.gov, discussed their collective priorities and recommendations for President Trump and Congress at a briefing held January 25, 2017 in Washington D.C.

Speaking on the topic of healthcare, Governor McAuliffe said, “Repealing ACA without offering an adequate replacement will have far-reaching consequences particularly for states that have expanded Medicaid.”

As Governor McAuliffe reports, “In Virginia, we have not expanded Medicaid, but a repeal of the ACA accompanied with a proposed block grant for the healthcare entitlement could cost the state more than $300 million over the next two years.”

Governor Sandoval is particularly enthusiastic about any proposed federal reforms that provide states with greater flexibility to develop innovative solutions. He pointed out, “As managers of Medicaid for the people in the states, governors have a crucial role to play in the future of American healthcare. He wants the governors to take part in discussions surrounding federal healthcare policy to help navigate the complex relationship between state and federal programs.

Once both governors gave their remarks, they answered questions from moderator Carrie Budoff Brown, Editor of Politico as well as from other reporters in the room.

In other news, the National Governors Association received a letter from Majority House Leader Kevin McCarthy, Chairman of the House Committee on Ways and Means Kevin Brady, Chairman of the House Committee on Energy and Commerce Greg Walden, and the Chair of the House Committee on Education and the Workforce Virginia Foxx, requesting feedback on potential changes to the Affordable Care Act.

Both Governors McAuliffe and Sandoval responded with a letter dated January 24, 2017 on their thoughts on healthcare reform. Both Governors are very interested in supporting vulnerable populations, but if changes are made to Medicaid financing, they want to see the federal government play a meaningful role and not shift costs to the states.

In addition, any reform proposal should protect states from unforeseen financial risks that might occur such as an economic downturn or perhaps higher costs due to new drugs, treatments, or epidemics that could result in a spike in Medicaid enrollment or increased per-beneficiary costs.

Also, governors are urging Congress to maintain predictability in federal programs while reforms are considered and not inadvertently lower the baseline for health spending during any interim period.