Ruh roh- it was only a matter of time before this shoe dropped (shows what happens when one empowers Senate extortionists):
The national health insurance reforms being hammered out in Washington D.C. are causing all sorts of headaches for New York Democrats, especially in light of stories that it may hurt the Empire State in terms of Medicaid reimbursement.
Gov. Paterson has already leveled such criticism and both US Senators are drawing flak over why they didn’t or weren’t able to cut a Nebraska-style sweetheart deal (Nebraska Sen. Ben Nelson is getting billions worth of new Medicaid assistance in exchange for his vote in support of the plan).
Relevant text of the letter:
Dear Attorney General Cuomo and Governor Paterson:
The disturbing revelations that the vote of a United States Senator on the federal health care reform bill may have been secured by a questionable deal to provide additional Medicaid dollars for his state has prompted Attorney Generals from at least seven states to consider filing a lawsuit challenging the constitutionality of the deal.
If such an action is pursued, New York should join with these states to protect the best interests of our taxpayers who stand to lose more than $1 billion from the proposed health care reform legislation.
The lawsuit planned by Attorneys General of seven states: Texas, South Carolina, Alabama, Colorado, Washington, Michigan and North Dakota, would challenge the constitutionality of a deal that would permanently exempt Nebraska from billions of dollars in Medicaid costs that would result from the health care reform bill passed by the United States Senate and would cause other states, including New York, to pay more for Medicaid.
Charges have been made that this compromise was nothing more than vote buying to secure last-minute support from Nebraska Senator Ben Nelson. In addition to Nebraska, Massachusetts, Vermont and Louisiana would also receive more federal support in paying their shares of additional Medicaid costs from the reform bill. Reportedly, other Senators are planning to seek permanent exemptions for the states they represent.
Governor, you and Mayor Bloomberg have called the health care reform bill passed by the Senate a fiscal disaster that would impose greater Medicaid costs on New York City and State. Senators Schumer and Gillibrand are claiming that the Senate bill protects the status quo for New York but that is not good enough as other states are reaping a windfall.
An unfair federal Medicaid reimbursement level already shortchanges our state. And now, because of a questionable vote-buying deal, that burden could increase significantly. If it takes legal action by the states to prevent such clear discrimination then I urge both of you to support such a suit.
That could have been avoided through use of the reconciliation process.