Heineman: All or none on Medicaid

WASHINGTON — A special Medicaid deal for Nebraska should be extended to all states or eliminated, Gov. Dave Heineman said Monday.

“It is imperative that every state is treated fairly and equally or all special deals must be removed (from the health care bill),” Heineman wrote in a letter to Sen. Ben Nelson, D-Neb.

Nelson announced his support for the health care bill only after striking an agreement that the federal government would cover the entire cost to Nebraska of the bill's Medicaid expansion.
Vermont and Massachusetts also are set to receive extra Medicaid assistance.

Nelson defended the arrangement for Nebraska by citing state budget concerns raised by Heineman, a Republican, who said the Medicaid expansion would cost Nebraska more than $45 million through 2019.

Nelson's office even described the deal as the “Heineman exemption.”

But Heineman said that although he has concerns about unfunded federal mandates, he doesn't agree with a deal that singles out Nebraska for special treatment.

The governor also described the overall health care bill's effects as “disastrous” and urged Nelson to oppose the next procedural vote on the bill, scheduled for Tuesday morning.

Nelson has said he's willing to eliminate Nebraska's exemption before the bill is signed into law, if that's what Heineman really wants.

Asked about Heineman's statements Monday, Nelson spokesman Jake Thompson said there is a difference between a statement and a request.

“If Governor Heineman contacts Senator Nelson and asks to have that provision pulled out of the bill, the senator will do so,” Thompson said.

Sen. Mike Johanns, R-Neb., also criticized the deal Monday on the Senate floor.

“Nebraskans are frustrated and angry that our beloved state has been thrust into the same pot with all of the other special deals that got cut here,” he said. “They are outraged that a backroom deal for our state might have been what puts this bill across the finish line.”

During a radio call-in show Monday, Nelson answered questions from Nebraskans — some angry about his decision to support the bill and others quite happy about it.

Asked about the Medicaid deal for Nebraska, Nelson said he's long fought against unfunded federal mandates.

He also said that there's time to address the situation of other states, because the expanded Medicaid costs won't hit them until 2017.

“It will result in other states getting it too,” Nelson said of Nebraska's deal. “There are 47 other states that are going to demand the same thing, and they should.”

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