I am particularly pleased to welcome a former Member of this Committee, Governor Richardson, and look forward to his testimony from his new perspective as a Governor. I appreciate all three Governors coming to present their perspectives on the Medicaid program before the Subcommittee today.

I note that missing from this hearing is the opportunity for Members and the public to hear from the elderly, individuals with disabilities, women with breast cancer, children, pregnant women, and parents who depend on this program for their health care -- the individuals who will be most negatively affected by the changes proposed by the President. I sincerely hope that we will have an opportunity to hear from beneficiaries as to how these proposed changes will affect their lives.

It is no secret that I have grave reservations about the proposal that President Bush has put forward to "reform" the Medicaid program. His reform proposal could more accurately be described as a frontal assault on the health insurance safety net in this country. Under the guise of helping states with fiscal relief, the President has proposed capping federal assistance to states -- ultimately shifting more, not less, of the burden onto states, that will then be forced to make further cuts to health insurance for families in need.

Some say the proposal is optional for states, so what is the harm? I do not believe it is fair or just to ask states to compromise their long-term future and the future health and well being of their residents by accepting a block grant that promises a few more dollars today for cuts in later years. It is a form of loan sharking. We can grant states additional flexibility without this radical change. We did this in 1997, and can do it again. I welcome a dialogue with states on this matter.

Some justify the proposal by saying the Federal caps only affect so-called "optional" populations. But I am not willing to get caught up in a technical debate about people being "mandatory" or "optional." Illness knows no such designation, nor should we. An elderly widow living on Social Security Survivors’ Benefit, a mother of two diagnosed with breast cancer through a CDC screening program, or a 7-year old with cerebral palsy living in a rural farm family -- all of these people are optional by the letter of the law, but I hardly think anyone would consider their health needs optional. They are very real.

I am particularly interested to hear today how this proposal will provide any long-term benefit to the residents of our witnesses’ respective states. How will this proposal benefit working families who rely on Medicaid to care for a disabled child or frail elderly parent, for example?

States need assistance with the cost of the burgeoning low-income Medicare population; the Bush proposal provides no such relief. States need assistance with the cost of prescription drugs; the Bush proposal provides no such relief. States need assistance with the cost of long-term care; again, the Bush proposal provides no such help. States need continued assistance to weather unexpected economic downturns; the Bush proposal provides no such help. To the contrary, it would cap federal assistance, leaving states most vulnerable in times of need.

For more than 35 years, the Federal Government has been a partner in this program. We have provided financial assistance to help states and shared the responsibility for taking care of those elderly, people with disabilities, pregnant women, parents and children who depend on us for their health care. We cannot afford to walk away from this state-federal partnership.

Let me close with a little advice to our Governors here today. The Administration’s Medicaid proposal seems to change daily. No one seems to know the details. Questions from Congress and the Governors have gone unanswered. I suggest we all read the fine print before making any radical changes. Also, my experience with Federal block grants is that they are the first step toward funding cuts. With the Federal deficit growing, block grants to states will always be at risk.

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