State fiscal officials from Connecticut, Vermont, Rhode Island, Illinois and Minnesota were united Thursday in urging the Trump administration to reverse funding cuts to health care.
A sweeping budget bill passed by Congress last year reduces spending on Medicaid and other federal programs by more than $1 trillion.
The reductions will offset tax cuts and funding for border security and other priorities backed by the president and Republican lawmakers.
Connecticut Comptroller Sean Scanlon joined Democratic counterparts from four other states to warn of the impact of the cuts, and describe their efforts to provide alternative solutions.
One such initiative aims to lower drug costs through a public pharmacy partnership, called ArrayRx. To date, more than 26,000 Connecticut residents have signed up — an inspiration to Vermont Treasurer Mike Pieciak.
“The ArrayRx partnership is government working at its best, instead of each of our individual states going at it alone," Pieciak said.
He was joined by Scanlon, Minnesota Auditor Julie Blaha, Illinois Treasurer Mike Frerichs and Robert Craven, director of policy at the office of the Rhode Island treasurer.
The officials warned that without federal action, more people will accumulate medical debt, delay treatment, lose insurance and strain the resources of states and hospitals.
New Medicaid work requirements and other changes enacted by Congress will increase the nation's uninsured population by 10 million people, according to federal estimates.
The fiscal heads talked of erasing medical debt and discussed strategies to cover access gaps left by the expiration of premium tax credits in the Affordable Care Act (ACA) program.
Craven said 5.2% of Rhode Island residents have incurred medical debt. While that's below the national average, Craven said he expects the number to grow as gaps widen for health care coverage.
“Most medical debt in Rhode Island and nationally is linked to one-time acute medical need," Craven said.
The expiration of the ACA subsidies led to more than 2,500 Vermonters forgoing health insurance they received through the state’s public exchange, Pieciak said.
He added that tightened Medicaid eligibility rules have stripped coverage away from non-citizens, and roughly 30,000 more people in the state will lose coverage when further changes take effect next year.
In Connecticut, the state stepped in to backfill expiring ACA subsidies. Going forward, Democratic Gov. Ned Lamont has proposed large corporations contribute, Scanlon said.
Lamont, who is campaigning for reelection, this month proposed charging businesses with 100 or more workers and certain large nonprofits up to $1,000 for each employee on Medicaid and reinvesting the money into the state's health care exchange.
Scanlon said his next priority is creating an alternative health insurance plan for Connecticut residents, known as the Connecticut Option. It would be designed as a hybrid public/private option – designed by the government but offered through commercial insurers.
Four out of six health carriers offering coverage in the small group market exited the state’s health exchange in the last four years.
“In the next legislative session when we reintroduce this bill, and the governor and I are making a huge push for it with our legislative allies, you will see some bipartisan support for this,” Scanlon said. “I think at a time when people look at Washington and see it as a broken place, I hope that they look at states and see it as the future.”
