Senate Budget Cuts Could Cost Some Taxpayers More

LAST WEEK'S BUDGET PLAN APPROVED BY THE STATE SENATE INCLUDED A 13 MILLION DOLLAR CUT.

THE FUNDS WOULD HAVE HELPED HOSPITALS COVER THE COST OF SERVICES FOR PEOPLE WHO HAVE LITTLE OR NO HEALTH INSURANCE.

SENATOR CHUCK MORSE, CHAIR OF THE FINANCE COMMITTEE, SAYS THE STATE MUST FIND A WAY TO CURB RISING HEALTH CARE COSTS.

TAPE: it's a complicated subject matter and the Senate had the budget for only a couple of weeks this year, but we thought we got as close as we could get.

BUT WHEN THE STATE TRIES TO SAVE 13 MILLION DOLLARS THIS WAY, THE EFFECT ON HOSPITALS IS TWICE AS BIG.

BECAUSE THE FEDERAL GOVERNMENT MATCHES
EVERY DOLLAR THE STATE SPENDS ON MEDICAID.

SO IF THE SENATE PLAN GOES THROUGH, HOSPITALS WILL FIND THEMSELVES WITH ABOUT 26 MILLION DOLLARS LESS.

TAPE: the costs don't go away, it's a matter of finding the means to pay for it somewhere.

THAT'S LESLIE MELBY WITH THE NEW HAMPSHIRE HOSPITAL ASSOCIATION.

TAPE: there would be significant cost shifting to recover those funds through private health plans.

SHE SAYS HER GROUP IS WORKING WITH LAWMAKERS TO GET THE FUNDING RESTORED.

WHEN THE HOUSE CONSIDERED A SIMILAR REDUCTION IN MEDICAID SPENDING EARLIER THIS YEAR, LAWMAKERS REJECTED THE PLAN.

ONE OF THE GROUPS LOBBYING AGAINST IT WAS THE BUSINESS AND INDUSTRY ASSOCIATION.

SPOKESPERSON BRETT ST.CLAIR.SAYS ANY CUTS IN REIMBURSEMENTS HURT THE STATE'S BUSINESS COMMUNITY.

TAPE: the state and the federal government developed the medicaid program as a way to provide medical care to the poor with the promised that they will adequately fund them and its really up to the state to live up to that promise because if they don't it adds up to higher health care costs for other citizens.

…..AND BUSINESSES THAT PROVIDE HEALTH INSURANCE FOR THEIR EMPLOYEES.

THE WASHINGTON DC-BASED ORGANIZATION FAMILIES USA HAS PUT A NUMBER ON THOSE HIGHER COSTS.

ACCORDING TO THEIR RECENT REPORT, FAMILIES ALREADY PAY AN ADDITIONAL $800 DOLLARS A YEAR IN HEALTH INSURANCE PREMIUMS TO COVER THE COSTS THE STATE DOESN'T PAY.

AND AS STEVE VARNUM, WITH THE NEW HAMPSHIRE CHILRDREN'S ALLIANCE ARGUES IT'S MORE EXPENSIVE TO COVER THE GAP THROUGH HIGHER PREMIUMS THAN THROUGH HIGHER TAXES.

TAPE: Because the tax system is such that it sort of spreads out the burden, because businesses pay, people pay thru your federal taxes and the cost is pretty spread out as widely as politically possible. But when something like this occurs those costs are being borne by a very specific group of citizens and businesses.

THE HOUSE HAS NOT YET AGREED TO THE SENATE'S PLAN.

AND WHEN HOUSE LAWMAKERS MEET WEDNESDAY THEY ARE LIKELY TO VOTE TO SEND THE ISSUE TO A CONFERENCE COMMITTEE TO WORK OUT A COMPROMISE.

FOR NHPR NEWS THIS IS MARK BEVIS IN CONCORD.