Speech
Medicaid Redesign Council
Remarks of Governor Judy Martz
State Capitol
7/10/2003
*** Check Against Delivery ***
Thank you Gail, for leading this effort and for the outstanding leadership you provide at DPHHS and for the advice and counsel you provide me.
I would also like to thank Jean Branscum, my Healthcare Policy Advisor. Thank you, Jean, for doing such an amazing job in making health issues a priority for Montana.
The story has been well documented about Montana’s growth in Medicaid caseloads and service utilization, which has made it an on-going challenge to live within our financial resources.
Fortunately, many service limitations, like eyeglasses, hearing aids, and prosthetic devices that were implemented in February were restored as of July 1.
It is the right thing to ensure that Montana’s most needy are able to access basic health care services.
It is also the right thing to pay our health care providers enough to cover their cost of providing these services. In times of tight budgets, or course, this can become a tug-of-war.
The bottom line is that service limitations put individuals and health care providers on a roller coaster ride.
We need to soften the ride to better position the State to guide us through the tight times by re-examining our state public health programs and setting priorities.
The provisions of HJR 13 are one answer.
Long before the 2003 Legislature began, Gail and her Deputy, John Chappius, came to me with the idea of overhauling the Medicaid program to do a couple of things…
1) to best utilize available financial resources and
2) to establish a funding method to prevent future mid-year reductions in programs and services.
The desired funding method was a provider assessment that would draw in more federal matching funds.
I was very pleased that hospitals and nursing homes embraced the idea, as a sound opportunity, and it is set to take effect on July 1.
You might recall that this idea was raised during the first Governor’s Health Care Summit held in May of last year.
The Department’s other objective, to best utilize existing funds, is what led to HJR 13.
Gail and her staff could have proceeded on their own, but they were astute enough to know the broad implications this project will have so they wisely sought the joint resolution.
The resolution is broad, in that it addresses several DPHHS programs. But the focus – at least initially – will be on the “biggie”… Medicaid.
With a total budget of about $500 million per year, Medicaid is the single largest General Fund expense at DPHHS.
With health care costs rising at a pace of about six percent annually in this program, it is clear, we can’t do business as we have in the past.
I want to acknowledge the good work that the DPHHS Medicaid employees have done to try and manage this situation. It has been gut-wrenching for them to have to make these difficult decisions on changes to services…so I want to make it clear that this redesign effort is not a fiscal management issue; rather, it is a way to deal with the changing social needs in Montana today, to address the types of services being used, the frequency with which they are used, and the growing caseloads.
A State health care policy must be developed and priorities must be outlined. We need to put forth a plan where quality health care services are provided to our most needy citizens within the limits of available resources.
I firmly believe opportunities exist to enhance access to affordable health care, and those opportunities must be pursued.
If there is a way we can do more with our state’s investment, then we owe it to our residents to find out how, and to make it happen.
Today is the first step in that process.
In a moment, I will be announcing my appointees to the Healthcare Redesign Advisory Council, whose task will be to develop recommendations for DPHHS to review with my office in advance of the 2005 Legislature.
But first, I want to acknowledge the exceptionally good work that the DPHHS Medicaid employees have done to try and manage this difficult situation.
It has been tough for them to make difficult decisions on changes in services, so I want to make it clear that this redesign effort is not a fiscal management issue.
Rather, it is a way to deal with the changing social needs in Montana today. A way to address the types of services being used and the frequency with which they are used and the growing caseloads.
With that, I will now announce the names of the individuals who will serve on the Council. As I read them, you will see that the 18 members are a diverse group of Montanans from all across the state, who bring a wealth of knowledge and personal experience with the Medicaid program.
Some of these individuals are with us today, so when your name is called, please stand if you are here.
First, the DPHHS Agency Lead: John Chappuis and the DPHHS Agency Consultant: Peter Blouke
Representing Medicaid Consumers
Twila Costigan of Intermountain Children’s Home
And
June Hermanson the Chair of the State Independent Living Council at MSU-Billings
Representing Physicians, Nursing, and Dentists
Dr. Gary Mihelish, a Helena dentist
And
R.D. Marks, M.D. of the Western Montana Clinic in Missoula
Representing Hospitals
James Kiser the CEO of St. James Community Healthcare in Butte
Representing Long Term Care and Senior Citizens
Bob Bartholomew the State Director of Montana AARP
And
Rose Hughes the Executive Director of the Montana Health Care Association
Representing Mental Health and Chemical Dependency
Loren Soft the CEO of the Yellowstone Boys and Girls Ranch
Representing Native Americans
John Pipe of the Fort Peck Tribe
Representing Insurance
Tanya Ask the Senior Director at Blue Cross Blue Shield of Montana
Representing Rural Health
Patsy Vargo, M.D. of Conrad
Thank you, work group members. There is one more person I would like to thank…Dr. Peter Blouke, who is the person assigned to facilitate this group’s progress.
Many of you know Peter from his long history of service to state government. I cannot think of a more capable person to lead this group.
A moment ago, I referred to the Governor’s Health Care Summit held last year in Bozeman. I want everyone to know that plans are underway for the 2nd annual Governor’s Health Care Summit that will address some of these policy issues. The 2nd Summit will be held in Billings on September 24 and 25.
Thank you again. We’ll now be happy to take your questions.
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