Our elected leaders speak - Senator Troy Jackson on DHHS myths

Dear Friends,

DHHS Shortfall Myths and Facts

SENATOR TROY JACKSON

Lately there has been a lot of discussion about the state's Department of Health and Human Services' (DHHS) budget and its purported shortfall. The Legislature will have to tackle this problem this session and we must deal with facts, not anecdotes.

Today I would like to lay out a few myths and facts and in the weeks ahead I will keep you informed about our progress.

MYTH: The projected $220 million shortfall was caused by a growth in enrollment.

FACT: According to DHHS analysis, the total cost of increased enrollment in MaineCare accounts for $6.5 million of the shortfall in 2012 and a projected $7.9 million of the claimed shortfall in 2013, for only 6.5 percent of the total projected $220 million shortfall.

MYTH: Enrollment growth is out of control. The state has spent more than it can afford on MaineCare.

FACT: According to DHHS, the total funding for the MaineCare program has been largely flat since 2006. Expenditures for the MaineCare program totaled $2.24 billion in 2006 compared to $2.44 billion in 2011, an increase of 8.9 percent over a five year period when medical care inflation has grown at a rate of 19.9 percent.

MYTH: The majority of childless adults, referred to as non-categorical or non-cats, are "able-bodied" and "young."

FACT: A new report from the Maine Equal Justice Partners, conducted with a leading physician and other experts, shows that the recipients are typically older than has been claimed and have serious medical conditions.  Key findings from the report include that 60 percent of recipients in this group are 35 or older; 43 percent are 45 or older; and 47 percent of those using the program have diagnosed medical conditions, such as cancer and diabetes.

MYTH: The Legislature's Office of Fiscal and Program Review (OFPR) verified the LePage Administration's shortfall analysis.

FACT: The Legislature's non-partisan fiscal office confirmed that DHHS was on track to spend the $120 million over budget in fiscal year 2012, but they were unable to independently verify the costs for 2013 or to fully agree on the cost drivers for either year. There has been no agreement on which costs are one-time versus ongoing.

MYTH: MaineCare is welfare.

FACT: MaineCare is a health care program. It provides health insurance and prescription drug coverage for the elderly, disabled, mentally ill and the poor.  Seventy percent of enrollees are either children, seniors or individuals with disabilities.

We will be making some very tough decisions in the months ahead and it is imperative we do this with accurate information. My colleagues and I will be pushing to better understand the shortfall before we make any decisions that will impact thousands of Mainers. To do otherwise would be a dereliction of our duty.

Sincerely,

Troy Jackson

Senator, District 35