Governor visits Plains

Montana Governor Steve Bullock D-MT paid a surprise visit to Plains on Thursday to take a tour of Clark Fork Valley Hospital and to meet with hospital representatives about his health care reform policy. The Governor along with Richard H. Opper, Director of the Montana Department of Public Health and Human Services, Cindy Stergar, health policy advisor, and other staffers took a brief tour of hospital facilities and then met for about an hour with CFVH senior management officials.
The purpose of the visit was to generate support for Montana House Bill 590 that would expand Medicaid, the state-federal program that pays medical bills for low-income families and individuals. The bill would allow Montana to take advantage of federal spending in compliance with the law known as the Affordable Care Act passed by Congress and signed into law by the Obama administration.
“The funding has already occurred. If we don’t take advantage of this, our money will be funding other states. We need to do this for our state,” said Bullock.
According to what Bullock told CFVH senior management officials in a closed meeting, House Bill 590 not only provides funding for the expansion of Medicaid, it will also create jobs here in Sanders County. With one of the highest unemployment rates in the state at 14 percent, Sanders County stands to gain hundreds of new jobs if the bill is passed according to Bullock.
“This bill will create 200 new jobs in Sanders County. Even if you cut that in half and we created only 100 new jobs, 100 new jobs in Sanders County is still significant,” said Bullock.
While opponents of the Affordable Care Act have resorted to the courts to challenge the legislation, the Supreme Court ruled that states could not be forced to participate in the expansion of Medicaid. Bullock supports the policy and is attempting to generate support for his own bill that is meeting resistance by a Republican controlled House in Helena.
House Bill 590, if passed, would change laws related to health care. The bill would revise Medicaid eligibility requirements, expanding the program to cover nondisabled, nonelderly and non-pregnant adults. According to figures contained within the text of the bill, a recent survey conducted by the University of Montana Bureau of Business and Economic Research indicates that about 20 percent of Montanans live without medical insurance.
The bill also cites a University of Montana study that showed Montana hospitals provided $150 million in uncompensated care in 2010. According to Bullock, the bill would address both of those issues as well as create jobs in the health care sector in Montana and specifically Sanders County.
If passed, House Bill 590, sponsored by House Minority Leader Chuck Hunter D-Helena, would expand Medicaid coverage to include all individuals and families in Montana with incomes up to 133 percent of the poverty level. The bill will allow Montana to take advantage of $750 million in federal funds over the next two years. The federal government will pay 100 percent of the costs until 2016 when states will begin to pay a percentage of the costs until 2020.
The funding from the federal government will come from a variety of taxes and offsets. Major sources of funding include an expanded Medicare tax on incomes over $200,000 and $250,000 for individuals and families, new fees for insurance providers, increased taxes on pharmaceuticals and a 10 percent sales tax on indoor tanning services.
Among the primary criticisms of House Bill 590 are that by creating jobs in health care, jobs will be destroyed in the private sector. Opponents also cite the fact that after three years, the state of Montana will begin to pay a percentage of the cost of Medicaid expansion.
When asked by the Valley Press to respond to these criticisms and specifically where the money will come from, the Governor had this to say:
“Here we are in Sanders County where the largest employer is the hospital. Creating jobs in the health care sector is providing jobs within the private sector. In one way or another we are all paying the costs for the uninsured. If we have a healthier community with a healthier workforce, we will have more productive, more efficient employees.”
The Governor continued, ”Reforming the system will save dollars. By creating 5,000 new jobs in the state, we are creating 5,000 new taxpayers generating revenue. We are paying for the uninsured right now. The potential for cost saving comes through reform.”
CFVH Chief Financial Officer Carla Neiman who attended the meeting responded to the message delivered by the Governor by saying, “I think Gov. Bullock is right on point when it comes to this issue. The federal dollars will be spent whether Montana accepts its share or not. Sanders County stands to benefit significantly from the proposed Medicaid expansion. According to the state’s estimate, 1,013 Sanders County residents who currently have no insurance would be eligible for Medicaid coverage under the expansion. Also, the hospital will see a demand for more health care providers and supporting staff.”
House Bill 590 is currently scheduled for a hearing with the Montana House Human Services Committee on March 25. As of 2013, the House has a 61-39 Republican majority.