NPR logo

Governors' D.C. Summit Dominated By Medicaid And The Sequester

  • Download
  • <iframe src="https://www.npr.org/player/embed/172894112/172905423" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Governors' D.C. Summit Dominated By Medicaid And The Sequester

Policy-ish

Governors' D.C. Summit Dominated By Medicaid And The Sequester

  • Download
  • <iframe src="https://www.npr.org/player/embed/172894112/172905423" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

AUDIE CORNISH, HOST:

For the past several days, governors from across the country have been meeting in Washington. Their annual gathering wrapped up today at the White House with President Obama and Vice President Biden. Now, two issues have dominated discussions among the governors: The upcoming budget cuts known as the sequester, and the expansion of the Medicaid health program for the poor.

NPR's Julie Rovner has our story.

JULIE ROVNER, BYLINE: It was no coincidence that the Obama administration released a detailed report on the how the across-the-board budget cuts could affect individual states, while the governors were all together in Washington. The president took the opportunity while meeting with the executives to do a little, well, lobbying.

PRESIDENT BARACK OBAMA: So while you are in town, I hope that you speak with your congressional delegation and remind them in no uncertain terms exactly what is at stake and exactly who is at risk.

ROVNER: But not all the governors are convinced that the cuts would be such a terrible thing. Among them is Nebraska Republican Dave Heineman.

GOVERNOR DAVE HEINEMAN: It's hard for me to believe that America is going to be devastated by the federal government cutting its budget two or three percent.

ROVNER: And it wasn't just the federal budget that occupied the governors during their closed door sessions. A major topic of conversation was Medicaid, specifically whether or not to go along next year with the expansion of Medicaid under the Affordable Care Act. Now, Medicaid is always a major topic of discussion for governors, says Oregon Democrat John Kitzhaber, a physician and longtime healthcare innovator.

GOVERNOR JOHN KITZHABER: The one consistent thing, though, is Medicaid is a real central issue on the minds of just about every governor. It's, in most states, growing faster than state revenue. They know it's not sustainable. They're very concerned about that.

ROVNER: But Medicaid is a more immediate issue than ever after the Supreme Court made that expansion optional. Until recently, most Republicans were still just saying no to the expansion, which would start next January. But this weekend, many seemed to be taking a somewhat different tack. Idaho Republican Butch Otter said calling it a shift would be wrong. He said it's more a matter of playing the hand he's been dealt.

GOVERNOR BUTCH OTTER: So we tried in court. We tried at the polls. Then in the polls for a new president. We tried for a new Senate. We lost on all those fronts, so now it's time for us to recognize that one of the most important tenets of a Republican form of government is the rule of law.

ROVNER: Idaho hasn't actually said yet if it will expand its Medicaid program. It's still in negotiations with the Department of Health and Human Services. That was something else going on behind the scenes at the governors' meeting. HHS Secretary Kathleen Sebelius was meeting individually with governors to see what it would take to get them to take the money.

OTTER: They've got a lot of coffee and a lot of water upstairs. I think they're meeting with almost every governor.

ROVNER: Under the law, the federal government has promised to pay 100 percent of the added Medicaid costs for the first three years and at least 90 percent after that. But one thing that seems to be holding a lot of governors back from committing to the Medicaid expansion is the question of whether that money will really be there.

GOVERNOR TERRY BRANSTAD: I think the big problem we've got is Medicaid is one of these out of control entitlement programs.

ROVNER: Terry Branstad is Iowa's Republican governor. He's worried that with the current state of the federal budget, Medicaid will inevitably end up on the chopping block and the promised funding will go away.

BRANSTAD: The federal government is going to have to deal with the situation and what they've done in the past is they just dump the cost on the states. We don't want to tie ourselves to a sinking ship.

ROVNER: So far only seven of the nation's 30 Republican governors have said they'll go ahead and expand Medicaid starting next year, but Oregon Democrat Kitzhaber says the most recent, Florida's Rick Scott, could change many more minds.

KITZHABER: He was also a very prominent opponent of doing what he's now decided to do and I think that gives other people permission.

ROVNER: Even the Republicans who remain opposed to expanding Medicaid in their states are now saying every governor has to do what's right for his or her individual state. That's a marked change from last year. Julie Rover, NPR News, Washington.

Copyright © 2013 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.