The Governor’s Medicaid worries

Although Governor Schwarzenegger is one of the very few Republicans supporting Democratic-led healthcare reform, he has issued a letter outlining a number of fiscal concerns to House Speaker, Nancy Pelosi, and the California congressional delegation.  With the golden state mired in yet another crushing budget deficit, here are his most pressing concerns:

1.  The bill would cost California $3-$4 billion a year in Medicaid expansion.

2.  The bill would reduce the state’s flexibility in making much needed cuts in Medicaid, Medi-Cal, and other costly benefits.

3.  The state’s Medicaid reimbursement rates are the lowest in the country.

4.  The Federal Government owes California back payments on Medicaid reimbursement due to past administrative errors.

While expressing his continued support for Obama’s healthcare reform efforts, the Governor made it clear that California will not be able to shoulder the financial burden of the new bill’s current stipulations.