Washington, D.C. — Congressman G. K. Butterfield today introduced legislation that would provide relief and protection for counties increasingly burdened with skyrocketing Medicaid costs.
“Medicaid is a vitally important and successful cooperative program between the state and federal government,” Butterfield said. “Passing along the state’s burden to the counties is making it increasingly difficult for many communities to provide basic services.”
Butterfield said North Carolina is now the only state that requires counties to participate with Medicaid costs, and that this is an enormous and growing burden. He pointed out that half of North Carolina’s 100 counties now pay more for Medicaid than for their schools. Butterfield said that in two counties he represents, Bertie and Herfort, Medicaid costs eat up 14.8% and 14.1% of the counties’ budgets, respectively.
Butterfield said that while a temporary freeze for county Medicaid costs was included in the state budget, the need for a permanent solution still needs to be found. He also said that the $27.4 million in state relief was also welcome but it too is still very small when compared to the $487.9 million counties pay in Medicaid costs.
Butterfield said that that he was also encouraged by the state House and Senate leadership pledge to support a legislative study commission on the elimination of county financial participation in Medicaid services.
Butterfield said that he will be seeking co-sponsors for the Medicaid County Protection Act of 2007, which would expressly prohibit states from passing along the costs of Medicaid.
Butterfield said that the current situation is very difficult for many of the poor and rural communities that he represents because local property tax revenues simply cannot keep up with the growing Medicaid costs. Butterfield also pointed out that states, unlike counties, have the ability to make changes in eligibility, covered services, and how those services are reimbursed and delivered.
“Medicaid costs for some counties grew as much as 137% over the last seven years, yet counties lack any means to deal with the huge increases,” Butterfield said.
Traveling throughout the district, Butterfield said that local officials constantly talk about the increasing burden emphasizing how much it’s affecting the quality of life in their communities. Butterfield said that the current arrangement makes it difficult to provide the needed capital improvements to schools for many of the communities who need it most.