National Governors Association Urges States To Prepare For Transition In Health Care Delivery

By Laurel Brishel Prichard University of New Mexico/ Talk Radio News Service

The National Governors Association (NGA) urged governors Monday to prepare for changes in how health care is delivered in their states, regardless of reform legislation’s final language.

“If something does pass, states are going to need to quickly move into action,” Andrea Maresca, the Legislative Director for Health Care at the NGA, said during the organization’s winter conference in Washington, D.C.

Added Maresca, “As the process has moved farther along we’ve seen a growing interest from federal policy makers about what states’ role is and clearly a shift in thinking about how governors and key leaders within the states are going to be involved in the implication process.”

NGA Director for the Health & Human Services Committee Matt Salo, who also spoke at the conference, said many governors have been extremely concerned on how the reform will effect Medicaid programs, and explained that while the temporary financing for Medicaid from the recovery act will eventually run out, Congress has been open to extending $26 billion over 6 months to help ease the states in moving into a new era of health care.

"The Great Recession" Has Ended, Says Economist

By Laurel Brishel Prichard - University of New Mexico/Talk Radio News Service

“The recession is over,” said Dr. Mark Zandi, Chief Economist of MoodysEconomy.com, Monday afternoon at the National Governors Association’s winter meeting. The closing plenary statements were hopeful in regards to the economy and the increase in jobs.

The economy has begun to grow and the loss of jobs should end after one more month, according to Zandi. The increase of the Gross Domestic Product by four percent in the second half of 2009 will act as a gateway to not only more jobs, but the continued stabilization of the economy as a whole, he added.

“The coast is not clear, at least not yet,” said Zandi with regards to the economic standing.

While the tide is slowly starting to turn with the job market, there is still a lot of work to be done in terms of the housing market, which is a major factor in our nation's economic standing, said Zandi.

The housing market will take much longer to rebound in comparison to the job market. The amount of foreclosures that have recently flowed into the real estate market will be what keeps the housing market depressed and what keeps local tax revenue constrained, Zandi said.

“Even when we are on the other side of this great recession...when the economy is growing again your troubles will not go away,” said Zandi to the panel of Governors on the issue of state and local revenue growth.

Governors seek Federal aid for Medicaid & Infrastructure

Governor Jim Douglas (R-Vt.) said “The challenge that we’re facing right now is a real one, and it has a cascading affect when the economy begins to go sour. Economic activity declines, investment is lower, the number of jobs decreases, income tax receipts are down, so a state’s fiscal fixtures begin to deteriorate… States are taking the lead in tightening our belts and reducing state spending… But economists across the political spectrum have made it clear that counter-cyclical spending by the federal government can accelerate our recovery.”

This is why Gov. Douglas says the National Governors Association (NGA) is making two considerate requests of Congress for a state stimulus package. First, support for infrastructure investment. Funding would go to “ready-to-go” state projects, of which more than 70% would go to transportation, and the remainder to renewable energy projects, water and sewage treatment, and investment in broadband infrastructure. Second, the NGA is requesting an increase in support for state Medicaid Programs, which are increasingly demanded during this economic downturn.

Governor Ed Rendell (D-Pa.), Gov. Douglas, and North Carolina General Assembly Speaker Joe Hackney agreed that President-Elect Obama will be very responsive to the NGA’s requests---the question is where the funding will be allocated and in what fashion.