Demos protest GOP cuts in children's health plan

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – Democratic lawmakers went on the offensive Monday, blasting Senate Republicans who recommended cuts last week in proposed funding for the voter-approved expansion of state-funded children’s health care.

“This is a travesty,” said Sen. David Wanzenried, D-Missoula. “I’m outraged about this.”

In a press conference held on the rotunda steps, 25 members of the Progressive Democratic Caucus, led by Sen. Christine Kaufmann, D-Helena, lambasted the GOP decisions to cut government services during a recession.

“These are irresponsible and cowardly actions,” Kaufmann said. “Will we choose pavement over peoples’ lives?”

The decision to cut the expansion for the Healthy Montana Kids Plan came late Friday night as the Republican-controlled Senate Finance Committee recommended cutting $120 million out of the state budget bill, House Bill 2.

Of that savings, $50 million would come from scaling back the Healthy Montana Kids Plan, according to Sen. Dave Lewis, R-Helena.

Lewis said expanding any program during a recession is dangerous for state finances, even if the federal government promises to match the state’s dollars, as it does in the children’s health insurance program.

“You still have to have the match,” Lewis said during the budget hearing. “You can go broke at a clearance sale.”

The health care expansion has been a contentious issue this session. After being approved by more than 70 percent of voters in November, the Legislature needed to grant funding authority before the program could expand to cover an estimated 30,000 uninsured Montana children.

However, Republicans in both the House and Senate have said the state can’t afford to expand that program during this economic crisis. They also said voters in November didn’t know the expansion’s true costs.

Democrats disagreed.

“Republicans said we didn’t know what we were voting for,” Kaufmann said. “Yeah, right.”

Wanzenried said that because state-funded health insurance is one of benefits of being a legislator, maybe those perks should be reduced as well.

“Half of the people in the Legislature who oppose funding it should give (up their insurance), don’t you think?” Wanzenried said.

But Senate Finance and Claims Chairman Keith Bales, R-Otter, said the budget decisions were not cuts but actually reduced increases.

“We think that it is important that the state not spend more than they’re taking in during the biennium,” Bales said. “In this time when we are faced with problems on funding, we thought it would be prudent to phase (Healthy Montana Kids) in.”

Bales also said he believes the reductions do reflect the views of the voters today. He said Montanans were more optimistic about the economy in November than they are in today’s recession. He also said he was confident the reduced expansion will still help children in need.

“If a person gets laid off or has trouble, their children will automatically qualify for CHIP,” Bales said. “The people that do need health insurance for their children will get health insurance for their children.”

As approved by voters, the expansion would have offered health coverage for children whose parents earned 250 percent of the federal poverty level, or about $50,000 for a family of four. Bales said that providing state-funded health insurance for families making $50,000 is not a priority.

The Senate amendments in HB 2 still expand the Children’s Health Insurance Plan and Medicaid, but only for those who earn 200 percent of poverty level.

In addition to recommending cuts in CHIP, Bales’ committee also voted to reduce state spending by 2 percent across the board for state agencies and use more one-time stimulus money to fund education.