January 18, 2005

LANSING – Michigan Governor Jennifer M. Granholm will be in Washington, D.C. tomorrow to make the case that the federal government must continue its commitment to provide health care to seniors, the disabled, children, pregnant women, and other vulnerable populations, and must resist any attempts to shift more costs for these services to the states.

"We cannot allow the Bush Administration to turn its back on vulnerable citizens under the guise of fiscal responsibility," Granholm said. "Our federal deficit is skyrocketing out of control, but only now are we hearing calls in Washington for fiscal discipline. We want to be certain that fiscal discipline isn't a code word for shifting more costs to the states, just at a time when they are grappling with ballooning health care costs and increasing Medicaid caseloads. We must work together to find a solution."

Granholm is one of 12 governors participating in a National Governors Association (NGA) sponsored meeting tomorrow to begin discussions on Medicaid reform and ways to avoid federal cuts to the Medicaid program that the Bush Administration may propose in its upcoming budget. The bipartisan group of governors also will explore reforms to the programs that they may recommend to Congress.

Among the governors scheduled to attend Wednesday's meeting along with Granholm are: NGA Chair and Virginia Governor Mark Warner, NGA Vice-Chair and Arkansas Governor Mike Huckabee, Idaho Governor Dirk Kempthorne, Iowa Governor Tom Vilsack, Massachusetts Governor Mitt Romney, South Dakota Governor Mike Rounds, Wisconsin Governor Jim Doyle, Mississippi Governor Haley Barbour, Nevada Governor Ken Guinn, Kentucky Governor Ernie Fletcher, and Ohio Governor Bob Taft.

Granholm said she intends to head-off any potential plans by the federal government to shift more Medicaid costs to the states and hopes to develop proposals that reform the program and find innovative ways to reduce the costs.

"Medicaid, in its current form, is an unsustainable program for states due to significant and growing long term care costs and caseload growth that is not letting up," Granholm said. "We need the federal government to give states increased flexibility if we are to maintain services for our most vulnerable citizens."

Granholm currently serves as chairperson of the National Governor's Association Health and Human Services Committee.

Granholm will be accompanied on her trip to the nation's Capitol by Janet Olszewski, director of the Michigan Department of Community Health.

Despite facing massive budget deficits, Michigan has been able to maintain Medicaid services for more than 1.4 million citizens - the highest enrollment ever in the program. Last year, Michigan spent roughly $7.5 billion on its Medicaid program.

Michigan's Medicaid program primarily serves disabled adults, senior citizens, and children. Last year, the state's Medicaid program paid for 40,000 births – 40 percent of the total number of births – and provided health care services for one out of every seven people. Medicaid also pays for two-thirds of all long term care expenses in the state.

Under the Granholm Administration, Michigan has worked to control Medicaid costs by using new programs to keep prescription drug costs low, maximizing federal funding, and holding down payment rates to providers.

# # #