Lawmaker sends letter to Speaker Pelosi
WASHINGTON – U.S. Rep. Gabrielle Giffords is concerned that the Senate version of health insurance reform legislation will impose financial demands on Arizona taxpayers.
In a letter to House Speaker Nancy Pelosi, Giffords noted that Arizona’s governor believes the Senate version of the health care bill could be devastating to Arizona.
By contrast, Giffords wrote that the House version of the health insurance reform bill would not impose the same costs on Arizonans.
Both the House and the Senate have passed their own versions of health insurance reform. Differences between the bills are being negotiated for a final bill to be considered by both chambers.
Giffords letter to Pelosi comes amid a growing national debate about how states will be impacted by the Senate version of the bill. A few weeks ago, the Republican governor of California and the Democratic governor of New York said their states would be buried under new health expenses if the Senate version became law.
At issue in Arizona is the Arizona Health Care Cost Containment System, Arizona’s version of Medicaid, which provides health care to low-income residents.
Giffords told Pelosi that in 2000, Arizona voters approved a ballot measure that expanded health coverage under AHCCCS to all those living below the federal poverty level. Since then, Arizona has added more than 300,000 new members to the AHCCCS rolls.
Arizona is among six states with Medicaid programs more generous than the federal requirement.
The Senate version of health insurance reform would require that Arizona expand coverage to an additional 200,000 people who earn up to 133 percent of the federal poverty.
The cost of that additional coverage – about $4 billion between now and 2020 – would be paid by the state, Giffords wrote Pelosi. The House version of the legislation would decrease the state’s costs by $7 billion over the same period, Giffords noted.
“We cannot add further burden upon our states during this difficult economic time,” Giffords wrote Pelosi.
A copy of Giffords’ letter to Pelosi is below.
Dear Speaker Pelosi:
Thank you for your unwavering commitment to pass historic health insurance reform legislation in the 111th Congress. I was proud to support the Affordable Health Care for America Act (H.R. 3962) in November; however, I want to express my concern about Arizona’s ability to afford new Medicaid enrollees as outlined in the Senate bill.
Arizona’s fiscal situation is dire. A November Pew study called Arizona a “state in fiscal peril.” For the state’s fiscal year 2010 budget, it will have $7 billion in revenue to pay for $11 billion in spending.
In 2000, Arizona voters approved Proposition 204, which expanded health coverage under the state's Medicaid program to all Arizonans up to 100% of the federal poverty level (FPL). Since June of 2007, Arizona has added over 300,000 new members to its single state Medicaid agency which is called the Arizona Health Care Cost Containment System (AHCCCS). AHCCCS is now used by 1.4 million Arizonans at an annual cost of $10 billion.
According to Arizona Governor Janice Brewer, the Senate version of the health care bill could be devastating to Arizona. The bill defines “newly eligible” participants as only those who are not currently eligible between 100%-133%. It is estimated that about 200,000 Arizonans are currently eligible but are not enrolled. If these people are required to enroll, the cost would have to be covered by Arizona, not the federal government which could increase Arizona’s costs by almost $4 billion between now and FY2020.
For my state, the House version of the health care bill is more desirable. The Affordable Health Care for America Act defines “newly eligible” to include all Arizonans between 100%-150% FPL, providing a total savings of nearly $7 billion against the current baseline through 2020 to Arizona’s share of the cost of AHCCCS.
I am confident that many other states are in similarly difficult financial circumstances. Thank you for your continued leadership on health insurance reform legislation. We cannot add further burden upon our states during this difficult economic time.
Sincerely yours,
Gabrielle Giffords
Member of Congress