Governor Bill Haslam announced Wednesday that he would not currently seek Tennessee’s participation in a Medicaid expansion as envisioned by President Obama’s signature healthcare law. Instead, Governor Haslam will focus on reforming the entitlement program known in the state as TennCare.
“We are proud of Gov. Haslam for standing up against this ill-conceived plan to add more struggling Tennesseans to a broken TennCare program,” said Beacon Center CEO Justin Owen. “Even President Obama himself said that healthcare reform should not be just about adding more people to the rolls of the government-run healthcare program before seeking to do just that.”
“Now is the time to roll up our sleeves and press for real reforms that will improve the quality of life for TennCare enrollees and protect taxpayers’ wallets,” Mr. Owen said. “We look forward to helping advance reforms that will do just that.”
“I applaud Governor Haslam's decision today to reject Medicaid expansion as envisioned by ObamaCare in this year’s budget,” stated Senator Brian Kelsey (R – Germantown) following the governor’s announcement Wednesday morning. “I am happy to receive the governor’s commitment not to expand Medicaid in future years without legislative approval.”
Senator Kelsey is the sponsor of Senate Bill 804, filed to block Medicaid expansion in Tennessee. Senator Kelsey originally filed Senate Bill 1 on Nov. 7, 2012 to block expansion. He redrafted the bill and filed SB 804 on January 31, 2013 with 15 of the 33 state Senators as co-sponsors. The bill is scheduled for a vote in the Senate Commerce Committee Tuesday afternoon. Senator Kelsey serves as Senate Judiciary Committee chairman.
“To say that we are disappointed would be an understatement," commented Brad A. Palmertree, interim executive director of the Tennessee Health Care Campaign, a nonprofit health care consumer advocacy organization in Nashville. "Governor Haslam had the opportunity to show real leadership for the people of Tennessee. We all know that those who need insurance the most are usually the ones who cannot afford it. Because of his decision, there will still be hundreds of thousands of uninsured Tennesseans. These will be children who will go without needed vaccinations, baby boomers who will continue to put off needed care, and individuals living with disabilities without needed aids."
"I applaud Governor Haslam's decision to reject Obama's medicaid expansion," said Lt. Governor Ron Ramsey. "Without bold reform of the Medicaid program tailored to Tennessee's unique situation, there can be no compromise on this issue.
"Four out of every ten dollars the federal government spends comes out of the back pockets of future generations. Tennessee must receive assurances that have not been forthcoming. Governor Haslam has laid out a plan for what true health care reform looks like. I commend him for his continued thoughtful and measured approach to this complex issue."
“Once again, Governor Haslam has proven he is a man of principle," said Tennessee Republican Party Chairman Chris Devaney. "He took his time to thoroughly research this issue and gather all the facts. Instead of merely providing an answer that was politically motivated, he dutifully went about the business of being a true leader. In the era of instant gratification, that is a lost art. I’m proud Governor Haslam has stood strong for the best interests of Tennesseans.”
Tennessee Democratic Party Chairman Roy Herron said, "Deuteronomy 30 urges us to 'choose life,' but self-proclaimed 'pro-life' Republicans applauded the governor denying health insurance to 300,000 Tennesseans in working families, even though that means each week another parent, another child, another loved one -- or two -- will die. Reactionary and radical Republicans should never again call themselves 'pro-life,' not while condemning working Tennesseans without health insurance to die. Tennessee should choose science instead of selfishness, people instead of politics, life instead of death."
Senator Bob Corker said, “I’ve had several conversations with Governor Haslam and appreciate that he has studied this issue extensively, weighed the options and chosen the course he feels is best for Tennessee.”
Senator Lamar Alexander said, "I trust Governor Haslam to do what is in the best interest of Tennesseans. I will do all I can to help the state get the flexibility he has asked for."
“We expected clarity today on Medicaid, but all we got was confusion," Senate Democratic Caucus Chairman Senator Lowe Finney said. “Our rural hospitals and the uninsured will be the ones to suffer."
“This is a time when the people of Tennessee need clear, precise and bold leadership, and Governor Haslam offered none of that today,” House Democratic Caucus Chairman Mike Turner said. “It’s a failure of our moral obligation to protect the health and welfare of the most vulnerable among us. It’s a failure that will be paid with the lives of the working poor in our state – this is quite simply shameful.”
“I truly believed that the governor was going to use this opportunity to show real leadership,” House Democratic Leader Craig Fitzhugh said. “Instead we’ve seen more of the hand-wringing and delayed action that we’ve become accustomed to. Lives will be lost while we wait for a real decision.”
“The governor made this decision in a vacuum without consulting leaders from either party,” Senate Democratic Leader Jim Kyle said. “We’ve heard from a broad coalition of groups who will suffer if we don’t expand Medicaid, and apparently their concerns fell on deaf ears. It matters who governs.”
Congressman Scott DesJarlais, M.D. (Tn.-04) said, "Expanding Medicaid based on a promise the federal government will pick up the tab is short-sighted. Washington’s unsustainable deficit spending means we will likely see a situation where the funds devoted to paying for the Medicaid expansion dry up, forcing states to foot the bill. It is my hope that the administration will listen to the local voices echoing across this country that the Obama plan will not work."
Craig Becker, president of the Tennessee Hospital Association, said, "Tennessee hospitals are disappointed the Governor couldn’t get the information he needs from CMS to move forward at this time with coverage of the expansion population.
"The Governor has asked CMS to allow Tennessee to bring those who would be eligible for the Medicaid expansion into the health insurance exchange and provide them private coverage, thereby leveraging federal funding to transform healthcare in Tennessee without expanding the Medicaid rolls. Tennessee hospitals believe this is the correct approach for Tennessee.
"We understand the need for clarity and we plan on working with the administration and the legislature to get the answers that will allow the state to make coverage available to the additional Tennesseans with incomes less than 138 percent of the federal poverty level.
"We are hopeful we will get the necessary assurances from the federal government that will allow the Governor to pursue the vision he outlined this morning and there can be a special session of the legislature in Tennessee to take advantage of the 100 percent federal funding available this year."
“Just like the governors of Arkansas and Florida, Governor Bill Haslam is trying to have it both ways: he wants to earn credit from Americans concerned about the government takeover of healthcare for rejecting the Medicaid expansion, while getting a special deal from the Obama Administration on the side,” said Kurt Potter of 912 Project Tennessee, a group affiliated with Tea Party Patriots, and who holds an MBA in Health Administration. “This ‘third way’ tries to get more taxpayer dollars for a failed healthcare system. Only the passage of the Health Care Compact for Tennessee can exact true healthcare reform for the long term.
“We urge the Tennessee legislature to reject Governor Haslam’s proposal and instead pass the Health Care Compact, said Mr. Becker.”
House Minority Leader Craig Fitzhugh has released the following statement in response to Governor Haslam’s decision to not participate in the Medicaid expansion:
"Earlier today, Governor Haslam announced Tennessee would turn down over $10 billion and not participate in Medicaid Expansion. This shocking decision comes after business groups, hospital associations, doctors, nurses, civic and faith leaders joined together to work with the governor on this critical decision that impacts our citizens and our economy.
"I truly believed that the governor was going to use this opportunity to show real leadership. Instead we’ve seen more of the hand-wringing and delayed action that we’ve become accustomed to.
"Here are the facts.
"Three hundred thousand Tennesseans will now be denied access to quality, affordable health care coverage; Coverage that wouldn’t have cost Tennessee taxpayers a dime for the first three years.
"Estimates show that 90,000 jobs may be lost, and dozens of our rural hospitals are at risk of closing – leaving as many as 21 counties without a hospital altogether.
"Tennessee’s economy will suffer as billions in federal dollars leave our state and go to California, New York and other states that have agreed to participate in Medicaid Expansion.
"All of that says nothing about the moral obligation that we have as lawmakers to ensure the health and well-being of the least among us.
"Governor Haslam says he is working on a 'Tennessee Plan' to address these concerns. However, his announcement today came with few details and even fewer certainties for the hundreds of thousands of Tennesseans who have been counting on the governor to do the right thing.
"While I hope that the governor is serious about working with the federal government to create an alternative plan, past experience makes me question the sincerity of these efforts.
"All too often with this administration, we have the governor study, and study, and study an issue, only to come back later and say 'no.'
"My friends today is an illustration of why it matters who governs and this governor has failed to deliver for the people of Tennessee. Our hearts go out to the thousands of people across this state who will suffer as a result of this decision. It is my hope and fervent prayer that in the future we can find a way to care for the least among us when they need it the most," concluded House Minority Leader Fitzhugh.
"The goals of our coalition of businesses and business leaders remain the same and we don't feel that today's announcement has closed that door," said Dan Hogan, CEO of Medalogix. "From the beginning, our goals were to protect jobs, businesses and our state’s economy from the devastating cuts that threaten some rural hospitals in our state with closure if we rejected Medicaid expansion. If the governor's plan accomplishes those goals, then we would certainly support it."
Rebecca Kelly, state director for AARP Tennessee, said, “While we are disappointed that we are not able to move forward today, we are glad that Governor Haslam continues to be interested in finding a way to provide health insurance for hard-working folks and their families. We are greatly concerned about the health care needs of individuals close to poverty as well as hospitals which are struggling to pay for care for those who are not insured.
“We are anxious to learn more about the Tennessee Plan and will work with the governor and the Legislature to arrive at the best solution for Tennessee.”