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 Michigan
House Appropriations Chair Marc Shulman Prepares To Talk
Medicaid Reform
MIRS, April 2, 2004
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The House
Appropriations Committee Chair Marc SHULMAN (R-West Bloomfield)
believes it's time to start looking at Medicaid reform and
that's why he expects to release a Medicaid issue white paper
outlining reforms when lawmakers return from the Easter recess.
"That really is the albatross [of the budget]," said Shulman,
about a program that consumes 25 percent of the state's General
Fund budget. "I'm working on a position paper, which I hope by
the time we return I'll be in a position to publish and put
out."
While providing few details, Shulman said the Medicaid reform
proposals put out by President George W. BUSH contain a lot of
good ideas. In January 2003, Bush released a proposal that would
give states a set amount and allow them greater flexibility to
shape their own program addressing Medicaid populations and the
benefits offered.
Under the President's plan, total Medicaid spending must remain
budget neutral over 10 years, so the additional money Michigan
could receive during the first seven years would be offset with
decreases in funding during the last three years. Questions have
been raised about whether this plan gives the type of
flexibility states want and whether the type of coverage a state
offers would suffer during tight budget times.
"There are some opportunities within the Medicaid proposal of
the President to reduce our Medicaid budget," said Shulman.
Shulman said his work on Medicaid reform proposals is his alone
and not a caucus or task force project.
"Other people may have different ideas. I think I indicated when
the governor presented her budget that there has to be a long
term strategy to address Medicaid and implementation of that,"
said Shulman. "I haven't seen it yet, at least from the
administration. I'm sure they're working on something. I'd like
to try to speed up the process because the temporary fiscal
relief we received last year, we're not going to receive it
again."
Governor Spokeswoman Mary DETLOFF said the administration
continues to work on the Medicaid program. Prior to being sworn
in, Granholm held a large Medicaid reform workshop. Since that
time, however, the administration has not put forward any
"omnibus" Medicaid reform package.
"The major issue we're facing right now with Medicaid is the
fact that the federal government has changed several policies
that has decreased Medicaid funding by $700 million and our
caseloads keep going up," said Detloff.
Shulman noted that the state has a shortfall in Medicaid in the
current Fiscal Year (FY) of at least $100 million. The
Appropriations Chair declined to say the Michigan Medicaid
program is "too generous" but did admit the benefits aren't bad.
"There was a time, there still might be, when we were taking
people off welfare and putting them back to work," Shulman said.
"However, from the standpoint of health care they were better
off to have stayed on Medicaid because the benefits were better
than in the workplace."
Shulman noted that health care costs are skyrocketing and the
state needs to look at Medicaid eligibility.
"That is what part of my ideas are in relation to the Medicaid
program," he added.
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Bernero on Fat School Kids
MIRS, April 2, 2004
Unsuccessful in his attempts to ban pop machines in schools,
Sen. Virgil Bernero (D-Lansing) is back with a plan to limit the
intake of fat on the school cafeteria line.
"We have an obesity epidemic," complains Bernero, who will
introduce legislation to outlaw all food containing more than
eight grams of fat.
We must "set nutrition standards in the four walls of the
cafeteria and in the school. Limiting fat content will get rid
of Twinkies, Ho-Hos, the chips, the soda pop given to our kids,"
he said.
Bernero is convinced most parents don't know what is being fed
to their children at schools. "A lot of kids are having chips
and a soda for lunch."
Recent reports indicate the state spends upwards of $3 billion
on health care for overweight children each year.
"This is outrageous. The garbage we have filled our schools with
. . . it is practically criminal," Bernero added.
His ban on soda pop in schools and his tax on soda pop never got
out of Senate committee. Bernero is hoping to get his latest
anti-fat bill assigned to the Senate Health Policy panel chaired
by Sen. Bev Hammerstrom (R-Temperance).
Bernero serves on that committee along with the senate's only
medical doctor Sen. Tom George (R-Kalamazoo).
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