$3.5 Billion Impact

Newell Normand
Monday, April 16th

Governor John Bel Edwards gives us an update on Medicaid expansion, budget shortfalls, and it's impact on you.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We're back and in this hour we're going to be talking about Medicaid expansion and in a resent. Add advocate editorial the advocates says that the advantages of expansion are both financial and medical and here to join honestly explain this to us is the governor of the state Louisiana John Bale Edwards welcome to the show governor. Well good morning bill was good to be with you and your listeners enough. Glad you're feeling better. Actually like to thank you so much. So there's been a lot of misinformation that is going around I just wanna tell you just one thing that really struck me before we talk about this. Uninsured rate falls to twelve and a half percent in Louisiana. And in my junior or senior year of law school in the early ninety's I did a paper on a medically uninsured and it was roughly 25%. At that time and when I saw this number the other day reported. I was it was shocked and offer me because I remember. The deleterious effects that this medically uninsured population had on a day in and day out living of our constituents in the state we've seen. No you're exactly right and and when the applicant government tanks were not much different than what you did you paper I think these official. Read about it Chu was right at 24% so basically one and four. Louisiana's did not have health insurance. And if you know the problem that causes. Is that they typically access this care amber she and because the federal walls don't allow them to be turned away that they can't panic. And that is the most expensive setting to receive medical care and the least effective way to manage disease. And we're paying forty cents on the dollar there when we insure we pay no more than ten cents on the dollar effect this year. For the month federal shares six that's on the dollars so that's where we have achieved tremendous savings. But we're improving people's out with access to health care. And as well and and doctor John rich and did the study did did he sided earlier out of that she's. The public administration institute and basically in a match you know what it sound as for 47 million dollar annual cost of the state. We are leveraging one point 85 billion dollars in federal funds each year that didn't comes two weeks in total of health care but it turns over our economy. And in the economic impact is really worth 3.5. Billion dollars and and over the time that these expand Medicaid. Under estimation has its responsible for little more than 191000 jobs across the state so. It's a big deal for this for economic reasons and partners we did it toward health care. A reasons but but it is and and and and that was the the value topic of this study. An honorable no one believes in coincidences but isn't it. True that this may have had an impact on the fiscal cliff number and why it is dropped. Oh yeah mostly well but the forecast has gotten better. Look at the end of last fiscal year June 30 we closed the books and capture plus and its first picture post a long time. And the forecast at them or EC has meant to considered changing forecast in the current fiscal year. They've improved the forecast because we we are doing better economically we have more people working. On diplomacy that ten year that we don't actually wage growth and attacked this year. Or the lecture should say which group the leisure and averaged two point 9%. And that's it the national average of 2.4 percent. And so would be improved economic circumstances. Due in part to Medicaid expansion or draw up in those forecasts in a positive direction. Which helps that we still have a tremendous clipping out of this is 640 million dollars. And we were still work on that but at least we're didn't go back which last week when she met. You know the other interesting thing that we lose sight of his all of the medical service. Providers all up and down the food chain of in the delivery of medical services. In states that have exercised Medicaid expansion. Haven't proved as as companies have improved financially and it is in his met a huge benefit to their employees. And that actual span for every dollar. That's there in new discretionary income that dollar turns over seven times in a micro economy. Clinton that's right in and of course future there on the hospital board NC you know well. Are difficult it is to treat a large number of them featured when you were not receiving. Compensation and so that and so. He's you know providers on ecstatic about Medicaid rates but Medicaid reimbursement rates be decked out in the open. And and you can look at hospital closures around the country. And you can only map of the states that did it did expand Medicaid and and overweight. That with a map book of hospital closures especially local hospital closures. And you'll see there's a very direct or so there's no doubt and but that our medical providers and a better position today. Then they would have been without the Medicaid expansion. And that way they can continue to provide medical care 22 people to reaching out and so I don't think it upset at the time expanded Medicaid dual. Do would be the easiest big decision makers governor and and I have no reason. To rethink that I mean every day it just changed board more obvious to me into others that was the right thing to do. So financially it's been a win but the bigger wind has been further you know the constituents of the state Louisiana has a relates to their health. Has this thing has save lives. There have been no doubt and and is it is good for the people police and I'll be it was Greg our tax dollars here rather than on the slopes. Two of the 32 other states now that the expanded Medicaid but it was obvious they so we know that because we can't hundreds of individuals. Too because Medicaid expansion of the two primary care. And they get diagnosed much earlier with diseases that otherwise would mean that they have until it was too late to treat them. So we get hundreds of individuals diagnosed for example colon cancer breast cancer. And they're getting treatment we've had. Thousands diagnosed with hypertension and diabetes. But these diagnoses incumbent earlier in the disease stage is when they can actually be treated. They can remain helping remained productive and in the work force or is otherwise they are not going to be doing those things and so. It's it's safe money but more importantly it saves lives in. And how often tell people you know it's the same Catholic Christian faith to lead me to be. Pro life on the issue abortion that tells me that the Medicaid expansion is also a pro life. Position no one of those positions is thought to be on the conservative side of the spectrum the other ones on the good side but for me than both com from the same place. Ten doesn't really matter at the end of the day. It is I think he knows that it's. Even the people who don't agree with that or not but for me it's it's a no brainer and it's more as an extension via. Governing you know the the one thing it's always confused me is set in during the Jindal administration. He took advantage of every other program. Of boarded Medicaid. But took advantage of every other. Program. That's kind of part of the same web. Extraordinary financing in this relationship with the federal government. But he did it because it was cold Birtley Don and it wasn't overtly. Yeah it you know I think you're right we're we're. Pushed table. Obviously recovering from some things that we that we inherited. And we're doing much better now some differences that coach earlier. But but the fact of the matter is we could've taken the bench and Medicaid expansion. When it would have been even better deal for the state back when it would cost nothing. For the first couple years and we missed out on those years longer. Given this revenue streams into our economy. And by the way it is beast these jobs are not public sector jobs for the most port these jobs that. Sector jobs and and that are opted to relieve but when the economy when we when we can use it. But you know I'm one of those individuals that I wanna do something that it makes its first day it's it's it's it's best for state. And in the politics will sort take care of itself. Idol try to make statements nationally about what do or don't do I just believe that the end of the day the best policy is also the best politics. Yeah I mean we knew we get caught up in the tit for tat sound bites it doesn't really lead to too much operationally that's gonna make a difference in the state. I think you're right and and the people at least give it and and come I'm not Aidan of this that we got archer challenges. But when I traveled the state people no coincidence until. That we were doing better that they're doing better. Book but we've got a long ways to go and we're gonna keep working really hard. To deliver better care to to mention that the economy. Does better that we fund education you know we're we're struggling out. To come with a budget here and the alleged interest it responsibly and adequate funds are critical priorities and how outrageous short 640 million dollars. In terms of what's available and actually wrote it to this year it's proving. It's proven almost. Impossible to do I would and after him have to come back on the other side of this session and do some things that we in relation to come election in fiscal solution and certainly should upon them MD. Special session earlier this year. You know discount a song and a prayer mentality. By some of the members of the legislature and thinking that this thing is going to improve significantly. Over the next fourteen to 21 days is that a reality. In our racing met last week. They improve the forecasts. Most of that improvement have to do this to changes in the tax structure. From last year in the benefited that that's gonna create for the state so. About it and that totaled 240 million dollars and 46 million dollar improvement. In the forecast through Saturday of that is because of the title text changed the restaurant because of these economies do about it. But that's the number. And and I'd probably don't have any higher numbers before the end of this fiscal year June 30. When one point four billion dollar effort to revenue falls off the table. And and all my plan was to keep not all that but but most of it. And aunts and my plan actually would have a net tax reduction. Of 400 million dollars when he looked at that post things that would. The revenue that that we allowed to expire without replacing. But at that level even that we have about 120 million dollars in cuts. Those cuts could be spread across government and they wouldn't be so deep. That we couldn't adequate appliance or the most critical priorities you just simply can't do that if you if you look at this 600. It is so million dollars in state general on that's going to be cut because when you put to the part of that aspect of health care. And I think the weight that the house preparations commuters for the both the budget bill just moments. Healthcare is gonna get the lion's share of that. That you lose all the fat. That would be attracted this well for. It's going to be. Billion dollars in cuts is something like that. And so it's it's ditch just not gonna work and I think that legislatures is gonna quickly come to terms with this is this is not a a worthy of the people are statement and have through approach legion and inducted topics and didn't get it done and we didn't. Would receive tremendous benefits to the states for a long time incumbent could we have moment now and if we don't want to lose it. Import them both of them as for the first element in here we've actually funded educational about it. And we slump took its funded tops scholarship program. We need to do that again picture as well but that's not what this budget currently dust. Well with with this budget it in this being the first that I get a shot across the about the lack of a better term. Does that mean we're not probably get we're not going to be able to. Get out of the regular session hurling get to a special session to just get into the meat to the issue. Well you know the last conversation I had with the president and the speaker that boat though they still don't lead to a turner. I believe that which are about to see is there's enough to individuals and legislate for open house and senate regardless supporting. Saying that this this budget is not workable. That it will reinforce that and and it's it's my hope that by the middle of maybe we would turn the regular session going to a special session that we can still conclude early in June. So it took actually. Addressed the revenue problems and fashioning budget that is worthy of the state. We can do that. You know there's not a lot of options available to us that we haven't had shall we we know what's what's possible window we need to do. And the and hopefully this exercise that that's been happening here and we're actually drove last. Several weeks prior to put together a budget which is the public today at least in the House Appropriations Committee. Legitimacy it becomes very clear that we just we just have to go back into a special session to access. Well governor I've said this to you privately you're optimism has always encouraging and so. Well I am optimistic and by the way a bit dangerous about what it would do and so much better. And and and it would be a shame to lose this momentum. And at just to open tournament do I remain. Optimistic and confident we're gonna find a way to come together. We shouldn't wait to the last second. That's not good for our state is not good for people it's not good for credit rating agencies and individuals who were trying to decide whether to ambassador states. But at the end of the day I'd just have to believe. And a little work very hard to make sure that this happens but we're gonna come together and and fix this problem for the benefit of the people here. And we will all be winners thank you so much for joining us who really appreciate your time and you're inside thank you so much have a great week. Will be right back after the break that was governor John Bell Edwards talking about the effects of Medicaid expansion both. Financially as well as for the benefit of the health of our citizens of the state Louisiana will be right back this is new rule under the Dario.