Aug 1, 2005

In my first days as Governor, I promised that I would not shy away from difficult issues. These past few months I’ve worked hard to involve all Nebraskans in a conversation about our priorities and the future needs of our state.

I am pleased to report that discussions regarding one of the most significant challenges facing our state are underway with the first meeting of the Medicaid Reform Advisory Council. Medicaid provides vital medical care for one in 10 Nebraskans. However, it is also a program with costs that are outpacing economic growth.

Twenty years ago, funding for Medicaid made up less than 7 percent of our state budget. This year that number was up to 17 percent. There is certainly no question that Medicaid provides both essential care for families and long-term care for our seniors, yet if this program continues to grow at current rates it will have a serious impact on our ability to fund the essential services we expect state government to provide.

Medicaid’s annual average growth is between nine and 12 percent, while state revenues are up four percent. The fact that Medicaid spending is growing at a rate double that of new growth in our state is an indication that we need to pay attention to this issue. For example, last year our state spent more on Medicaid than we did on funding for the University of Nebraska and all of higher education combined.

We are at a crossroads. If we are to be successful in growing our economy, we need to be willing to examine spending, and I believe the people of this state should be part of the ongoing discussion about the future and the kinds of services provided by the state.

We must be ready to meet the future needs of individuals and families, and an important part of ensuring the survival of this program will be to discuss the tough issue of how to curb growth while still providing meaningful assistance for those who need it.

I appreciate the leadership shown by state senators Phil Erdman of Bayard and Jim Jensen of Omaha in being willing to address this issue. It’s time to talk candidly about Medicaid, and that is why I want to urge every Nebraskan to be involved in this discussion. I encourage anyone interested in this issue to consider attending a meeting of the Medicaid Reform Advisory Council.

The reality of the situation is that we need to explore ways to bring spending for Medicaid under control, and with input from citizens from every corner of our state, I believe that goal can be met. It will take an open mind, but this problem will not be solved if we don’t take action.

We have a responsibility to provide access to the care Nebraska families need. My hope is that we can all agree that the fiscally responsible thing to do is to address these concerns now, in order to ensure that Medicaid remains an accessible priority for those in need.