Tuesday, September 16, 2008

See the Connection? 

Maryland expands govt. health care, now facing a deficit

By Marc Kilmer

Categories:  Maryland, Medicaid

Two recent news items from Maryland illustrate how some fail to see how expanding government programs strains state budgets. First, the Frederick News-Post celebrates the state's new health care programs:

Small firms can find a break on one of the most expensive parts of operating a business -- health care.

The state launched its Health Insurance Partnership, which can give small businesses up to 50 percent of health insurance premiums....

In July, the state launched its Medical Assistance to Families program, an expansion of Medicaid that covers parents with incomes up to $20,500 for a family of three, or 116 percent of the federal poverty level.

Earlier this year, the state also launched a prescription drug assistance program for seniors that helps close the gap between the federal Medicare Part D and full costs.

But, as the Annapolis Capital reports, all is not well with the state budget:

The struggling national economy continues to take a toll on Maryland government, with the state facing a $1 billion hole next legislative session. That sets the stage for possible reductions in education, health care and transportation spending.

Medicaid is one of the largest single items in the state budget and yet legislators and the governor expanded eligibility last year in the midst of a special session called to fix the state's deficit. I guess we can see how well that worked.



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