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Hartford (WTNH) – Gov. Jodi Rell (R-Connecticut) has asked Attorney General Richard Blumenthal to pursue legal action and protect the state’s constitutional rights when it comes the health care bill expected to pass tomorrow in the U.S. Senate.

A provision in the bill would allow the federal government to pick up 100-percent of the cost of Medicaid expansion in Nebraska. The deal was made to get Sen. Ben Nelson’s crucial 60th vote to keep the Senate Republicans from filibustering the bill.

Rell says that deal is “unfair to other states,” and wants to see Blumenthal secure 100-percent Medicaid reimbursement rates for Connecticut as well.

Dear Attorney General Blumenthal:
As you know, the fifty states traditionally receive only a partial reimbursement of their Medicaid expenses on a scale correlated to the individual state’s wealth. So-called higher income states receive the lowest allowable federal reimbursement rate, which is 50% of Medicaid expenses. Other less wealthy states may receive up to 76%. For example, while Nebraska is reimbursed at 60%, Connecticut is traditionally reimbursed at 50%. Under the American Recovery and Reinvestment Act (aka “federal stimulus program"), Connecticut is reimbursed temporarily at a higher rate ranging between 50 - 60.0125% based upon unemployment rates. This reimbursement rate, however, will return to 50% when the stimulus program ends.

Like many, I have been watching the national health care debate with much interest. Frankly, I was outraged to learn of Nebraska Senator Ben Nelson’s pledge of his vote for the national health care bill in exchange for, among other things, 100% federal reimbursement of Nebraska’s expanded Medicaid population costs. As I understand the proposed bill, the federal government will - incredibly - fully pay for all of Nebraska’s new enrollees below 133 percent of the federal poverty level after 2016 into perpetuity. This reimbursement is unfair to other states - to say the least. Senator Nelson himself said that his agreement “shield[s] Nebraska from an unfunded mandate….” What about the unfunded mandate for Connecticut and the other states? In the event that the terms of the Nebraska agreement applied to Connecticut, we have the potential to receive up to $262 million annually in additional federal reimbursement.

The inequity of this provision is astonishing. The cost of this health care bill is beyond comprehension because of all the special provisions included to garner the requisite 60 votes for passage. Said another way, nearly every Senator has received some special
consideration for a favorable vote. The process is one that is disturbing at best for the American public. While everyone has received something, Nebraska’s “gift” is particularly galling. In this time of extraordinary fiscal challenge, when states are facing record budget deficits and are seeing HUSKY and Medicaid case loads growing, all could use 100% reimbursement.

Therefore, if this bill passes into law in its present form, I am asking you to immediately pursue legal action on behalf of the State of Connecticut to ensure that Connecticut also receives the 100% reimbursement of costs for this underfunded federal mandate. Our 50 states should be treated equally; no preference should be given to one state over another.

I am sure you understand the importance of this matter and concur with my objectives. Thank you for your assistance and I eagerly await your action.

Sincerely,
M. Jodi Rell
Governor