New Co-Sponsors for Direct Support Professionals Fairness and Security Act

Rep. Paul Hodes(D-NH) and Rep. Tim Waltz (D-MN) signed on as co-sponsors to the Direct Support Professionals Fairness and Security Act (H.R. 868). Thank you to everyone who contacted their members urging them to sign on. Read more!

Stagnant Prices Prevent Social Security Increase

Social Security recipients will not receive a cost-of-living adjustment (COLA) to their 2010 benefits. The COLA will not be made for this first time since the adjustments began 34 years ago due to consumer prices falling in the July through September quarter this year. President Obama has issued support for a one-time, $250 payment to Social Security beneficiaries to hopefully bolster the finances of seniors who are suffering from the economic downturn and are accustomed to an increase in their monthly checks every January. Read more!

House Democratic Leaders Considering Even Larger Medicaid Expansion in Health Reform Overhaul and Floor Vote in Early November

Although all three of the House Committees working on health care reform adopted legislative language for reform in their areas of jurisdiction, House Democratic leaders are still working on details. This week, Speaker of the House Pelosi (D-CA) said that the House may increase the eligibility for the non-traditional Medicaid population (e.g. childless adults) from the bill’s original 133% of the federal poverty level to 150% of FPL in order to expand health care coverage to more low-income individuals through the less costly Medicaid program. Speaker Pelosi said Thursday that the House will push for the strongest public option possible to take into negotiations with the Senate on a healthcare overhaul and has asked CBO to score three different proposals to create a public health option. In addition, both the House Ways and Means and House Education and Labor Committees have sent reconciliation instructions to the Congressional Budget Office (CBO), laying the groundwork to use the filibuster-proof reconciliation process to pass health care reform this year if necessary. Majority Leader Hoyer (D-MD) said this week that he did not expect a House floor vote until the first week in November. Read more!

Senate Finance Committee Adopts Health Care Plan Moving the Bill Closer to the Next Hurdle—Senate Floor Vote

Ending the suspense regarding not only Republican committee member support but also some Democratic member support, the Senate Finance Committee adopted Chairman Baucus’ health reform plan with all Democrats and Senator Snowe (R-ME) voting 14 to 9 to pass it out of committee. Type The Congressional Budget Office (CBO) has said that the plan is estimated to cost $829 billion over ten years, is fully paid for, and would reduce the federal deficit by $81 billion over the first ten years. The committee’s action this week—the last of five committees to adopt health care reform—brought a “bump” in chances for and “renewed” enthusiasm for health care overhaul this year. The next steps involved some delicate “high-wire” balancing in order to gain sufficient votes to pass a bill on the Senate floor—even before a joint Senate and House final bill can emerge. The Senate Finance plan is different in key areas from the Senate HELP Committee and House health reform bills—the latter two of which include creation of public health options and an employer health care mandate. Senator Burris (D-IL) has reiterated again this week that he will not vote for a health reform bill that does not include a public health option—reducing the possibility of passage relying solely on the 60 votes of all Democrats and two Independents.

Senate Majority Leader Reid (D-NV) began immediately on Wednesday working with Senator Baucus, Senator Dodd (D-CT) who chaired the HELP Committee during its work on a health care reform bill earlier this year while Chairman Kennedy (D-MA) was ill, Director of the White House Office of Health Reform Nancy-Ann DeParle, and President Obama’s Chief of Staff Rahm Emmanuel Health to meld the Finance and HELP bills together in order to bring a single bill to the Senate floor. The Finance plan does not include 1) creation of a public health option (contained in both HELP and House versions) or 2) employer mandate (although it places a penalty on employers who don’t provide health care for each employee that obtains coverage through a Health Exchange) but does include an individual mandate with higher penalties than the House wants. The Finance “plan,” unlike the HELP bill, is in plain text and not in legislative language format. Once the melding of the two bills take place, then a final bill will be written in legislative language and costs will be rescored by CBO. The Senate Democratic leaders will be challenged with bringing a bill forward to the Senate floor that strikes the right balance to gain the necessary 60 votes to end a filibuster. Many amendments are expected to be offered on the Senate floor, including Senate Finance Democrats Rockefeller (WV), Schumer (NY), and Wyden (OR) push for creation of a public option. While Republicans are also expected to bring forth amendments on the floor—tort reform, reduction in individual penalties—such changes if accepted are unlikely to Republican votes. The challenge will be in crafting a Senate bill that does not alienate moderate Democrats in the Senate and may yet attract Senator Snowe and/or a few other Republicans.

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Maine Faces More Budget Cuts

State departments in the state of Maine are being asked to recommend ways to cut their budgets by $200 million. The state departments have two weeks two come up with suggestions as Ryan Low, commissioner of the Department of Administrative and Financial Services, and Gov. John Baldacci prepare a supplemental budget. Each department has been given an individual target with Health and Human Services and Education set to receive the largest cuts.

Thank you to Bonnie Jean Brooks providing this update. Read more!

Chart Tracking States’ Spending

ProPublica has a tracking site for stimulas (ARRA) funding to states. Read more!

Iowa State Budget Update

Thursday, October 8, 2009 Governor Chet Culver of Iowa announced a 10% across the board cut. Up until now, Medicaid providers in Iowa had been exempted from the two previous cuts due to the federal stimulus dollars.

Most Medicaid eligible recipients in Iowa have their local match paid by their county of legal settlement rather than the state. The only savings to the state would be for persons who are state cases and do not have a determined county of legal settlement. The estimate for ICFs/MR is that with a 10% rate cut the state would forfeit $12M in federal funding to save only $400,000 in state dollars, or a loss of $30 for every dollar saved.

It is unsure at the point whether Iowa may require legislative action for cutting Medicaid. That would mean the Governor Culver would have either to call for a special legislative session or wait until the next session convenes in January.

Thank you to Rod Braun from Christian Opportunity for this update.
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