March 29, 2010 in City

Washington applies for money under health overhaul law

$180 billion would help Basic Health Plan through 2014
By The Spokesman-Review
 

OLYMPIA – Washington state may be first in line for one aspect of the new federal health care reform law — submitting a request for some $180 million in federal money to help pay for the state’s Basic Health Plan.

U.S. Sen. Maria Cantwell joined several state officials Monday in hailing the new law, and saying they’ve already sent in a request for what’s known as “bridge funding.” That provision allows a state to request money through 2014 to help cover the costs of health insurance for residents who make too much to receive Medicaid but can’t afford private plans.

Washington has about 65,000 people on its Basic Health Plan who state officials believe should be covered by a waiver. If the U.S. Department of Health and Human Services agrees, the federal government could pay for two-thirds of their insurance costs, up to $180 million a year through 2014. That would ease the state’s budget problems and allow the state to expand the program.

“We want to be at the head of the line,” Gov. Chris Gregoire said. State officials believe they are the first to seek the waiver, which isn’t even available until April 1, but the U.S. Department of Health and Human Services was not able to confirm that Monday.

While Gregoire is seeking the waiver, Attorney General Rob McKenna is challenging aspects of health care reform. Last week he joined 12 other attorneys general in a lawsuit over the requirement that all individuals buy health insurance by 2014 and for provisions that would raise the cost of Medicaid later this decade.

McKenna said Monday that if the state receives the waiver and gets federal money for Basic Health, it won’t block Washington from arguing that other sections of the new law are unconstitutional. If the federal courts rule the individual insurance mandate and the Medicaid increases are unconstitutional, other provisions, including the bridge funding, the ban on denying coverage for pre-existing conditions or extending coverage to young adults on their parents’ plans would remain in place, he said.

Even though the provisions in the lawsuit don’t take effect for years, “these are important questions to challenge now,” McKenna said.

Gregoire disagrees with McKenna’s decision to join the lawsuit and Monday repeated her belief that it has no merit. States can opt out of Medicaid, she said, if they’re willing to give up the federal money.

12 comments on this story so far. Add yours!
  • Shylock13 on March 29 at 6:18 p.m.

    Why would the Federal Government give Washington a dime? Our AG is suing to stop the health reform bill! I wonder how many citizens of ALL OF Washington agree with the AG? It is dreadful, to me, that partisan politics, ON BOTH SIDES, stymie any REAL overhaul of our health care system. It desperately needs one. We are all subject to pharmaceutical firms charging outrageous amounts for our medications (and making zillions in profits). We are all subject to “restrictions” for our health coverage for such things as “pre-existing conditions” and “lifetime limits” (and the insurance companies are also making zillions in profits). All those profits come out of our pockets! And many of us can’t afford health insurance at all! And all of us are paying FAR MORE for our medical care than we should. The Health Bill is, in no way, perfect. BUT it is a start toward helping all of us!

  • misjustice on March 29 at 7:19 p.m.

    Theodore, you raise many valid points, especially those concerning the high cost of prescription drugs, and the obscene profits garnered by the CEOs of health insurance companies.

    I applaud the Governor’s office for putting us first in line for the “bridging funds”.

    I find it more than ironic that the AG claims to be concerned about the cut in funding for certain Medicare programs, such as Advantage Care. The party of which he is a member hates Medicare, fight attempts to fully fund the program and tried to derail its very formation. Now, when it is politcally to his benefit he tries to paint himselve as its saviour.

  • PhiltheBibliophil on March 29 at 8:00 p.m.

    I certainly believe in the Basic Health Care program, but it is ironic that Washington is the first in line for its “Free Money”. Nothing ever changes in this state, well not since Dan Evans or Albert D. Roselinni! It never matters how much money they get, they will spend every dime of it and then cry for more! “We the People” have to live on a budget, but not this State’s Government! The answer is JOBS, actually manufacturing things again in Amerika! Also a Flat Tax rate or National Sales Tax in Lieu of. Then all Corps, business and individuals pay the same. We would be awash in money for social services and infrastructure.. No Swiss or Cayman Tax Havens! But, if we did, Washington out of all states, expect for maybe MA would still spend it and Scream bloody murder for more! Just my opinion!

  • edmitch on March 29 at 9:56 p.m.

    Not every one is a “winner” under the health bill. Those who are self employed, work part-time, or work full time but not for the entire year, will be face with purchasing high premium/high benefit pre-paid health care/insurance. (Most today purchase lower premium/fewer benefits true insurance - not pre-paid gold plated health care.)

    These plans are estimated to raise premiums and out of pocket costs to $15,000 to $20,000 per year for a family of four. At an income of $88,000 per year, this is likely to account for 25% of their after tax income.

    This is a real problem that has been ignored by Congress. There are other “losers” in this bill - but we Congress and media now only talk about the “winners”. This bill causes a lot of pain to many millions of people.

    That does not mean I or others are opposed to significant health care reform. Surprisingly, this bill mostly spreads around higher costs to more people and does very little to address inefficiency and ineffectiveness of much of health dare.

  • heywoman on March 29 at 10:08 p.m.

    It is annoying that our state is asking for money. The clinic in our town is always trying to get people to sign up for low income and/or basic health coverage. It also gives a 20% discount if you pay in cash. We pay in cash, we qualify for most of the so-called freebies, but we can take care of ourselves,though it can be hard. I am so sad that Americans now believe that the government should take care of them, that they have no desire to take care of themselves, that they don’t believe that struggle can make a person stronger. It makes me wonder where those of us who want to be indepedent and make our own way will go.
    By the way, who pays for the research, testing and marketing of new drugs? Where do other countries get their drugs? If the government takes over the drug industry, do think it might be as smooth as the post office?

  • Erik_T on March 30 at 12:10 a.m.

    edmitch; this is a form of socialism by all of its merits. Those that earn more pay for those whom earn less… or in the case of the bill as it sits, also pay for those that earn nothing (and also those that are in the country illegally). It really is nothing new.
    Communism is Democracy in decline> Socialism is the first step.
    I do understand the budget crisis most health care providers (organizations) are facing. That is what happens when you have under-educated, and unemployable people sucking off the state/fed; Uneducated, welfare mother of 5 gets a cold, goes to the ER for antibiotics that she does not need, and will never pay for (along with the service)… Three days later she takes 3 of her 5 children to the same ER for the same service, while never paying a dime (and so on and so forth)…
    Sisters of Providence wrote off some 100+ million last year locally for this and other types of occurances for those that do not have money or insurance. Is it my fault that those people did not take advantage of what they were freely given regarding education and later employment? I personally have a relative by marrage who is pregnant, 21 years old, does not have a high school diploma, and is currently on welfare (with no father around). Am I suppose to foot the bill for her care, and the care of her child for 18 years+ (and many others just like her NATIONWIDE)??? SO, I get to work harder, and die younger, so the stupid can inherit the Earth?

  • EagleEye on March 30 at 1:58 a.m.

    Eric T,

    You nailed it. The public welfare examples that you described plus all of the unbelievably expensive corporate welfare programs are truly bankrupting our nation. Both are obscene and long term unsustainable.

    It’s pretty simple really. They keep spending, spending, spending on health care without limits (Medicaid, ObamaCare, Prescription Drug Benefit, etc), yet these ever increasing entitlement programs aren’t paid for - it’s just more deficit spending with absolutely no end in sight that the debts will ever be paid back. Where will it all lead? If these trends continue, we’ll eventually wake up one morning and read on CNN that our currency has collapsed and the banks are closed. The dollar won’t continue to be the world’s “reserve currency” for a whole lot longer with this Mega-trend in motion. THAT is what nobody seems willing to talk about or even look at !

    Wants are unlimited. The ability to PAY for those wants is limited and finite.

    The gap between the two has resulted in all of the deficits that we have been creating in recent decades that are now approaching exponential, actually parabolic proportions.

    Our ability to pay for the things we want has never been less since we gave away or lost our manufacturing capacity - (thanks to silly ideas like NAFTA and environmentalism gone crazy which pushed the jobs away).

    Eventually, there WILL be a price to be paid. Unfortunately, Americans aren’t collectively smart enough to see the problems until everything comes crashing down around their ears. Even after it hits them squarely between the eyes they likely won’t understand the cause and effect relationships that led to their suffering.

    Oh well, as long as we’ve got Jack in the Box dollar meals, American Idol and Dancing With The Stars (bread and circuses), everything will be ALLLLLL RIGHTTTTTTT - LOL!

    EE

  • EagleEye on March 30 at 2:38 a.m.

    Let’s take a look at how this system really works.

    1) Taxpayers give money to feds in the form of their hard earned taxes

    2) Feds give a fraction of that money back to States for pet projects and boondoggles, minus their substantial percentage cut for maintaining the hugely inefficient and corrupt bureaucracy. This insures that control always rests with the Feds as they get to “decide” when and how much to “give back” (or not!)

    3) Governors like Gregoire happily play into this system as they jockey for future political appointments.

    Does anybody else see a problem with the way this system is “working”?

    The truth of the matter is that it’s hopelessly broken and NOT WORKING for the common citizens. If we would simply do away with sending all of our money directly to the Feds and instead send it first to the States, we could turn the tables and only pay the Feds for what they are actually Constitutionally authorized to do (and no more).

    We, the citizens of every state, would realize a much more efficient allocation of our own money and not be beholden to an increasingly abusive Federal Government that looks upon the citizens as “subjects” to be fleeced.

    Read the Constitution - The Federal Government is granted limited powers and authority by the States, NOT the other way around !

    AG McKenna is finally starting to wake up to ideas like this and it’s about time!

    EE

  • misjustice on March 30 at 11:22 a.m.

    Everthing that Eagle, Eric, and others that are against the Health Insurance Reform Law, says would be true, if it were!

  • EagleEye on March 30 at 6:06 p.m.

    @misjustice,

    Please tell us SPECIFICALLY what you think “isn’t true” in our comments.

    Just the FACTS Ma’am……

    EE

  • Erik_T on April 08 at 1:02 a.m.

    Misjustice…. You said Health Insurance Reform Law…
    What has been passed recently is not reform, but overhaul, and socialized government control.
    Do you really believe in something, and stand behind something that our own executive branch, and representatives (The President, his family, senators, and congress people, and there families alike) are excluded and exempt from?
    My wish is that the citizens of this country would speak with informed, and correct opinions about what is really going on.
    I find that this will not occur in time.

  • chump on April 13 at 3:36 p.m.

    Great… now I can feel guilty that the feds are running around committing armed robbery of citizens of other states of the union for the benefit of my socialist state… great…

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