Markell: Federal cuts to Medicaid would shift costs to states

As President Obama and congressional leaders negotiate a deal to raise the nation's debt limit while making spending budgets, some governors are concerned the federal government may just pass financial liabilities for entitlements onto the states.

During a live interview Friday on Bloomberg TV, Delaware Gov. Jack Markell raised concerns about the federal government making states shoulder more of the cost for Medicaid, the federal and state health insurance program for the poor, disabled and nursing home residents.

“Because if all it is is a cost shift, let’s remember, it’s the same taxpayers,” Markell said during an interview at the National Governors Association meeting in Salt Lake City.

In other words, making states pick up a larger portion of already rising Medicaid bills would either forces states to make cuts in their budgets elsewhere to accommodate the added costs or raise taxes.

“Whether they’re paying state taxes or they’re paying federal taxes, a cost shift is not helpful," Markell added.

Without being specific, Markell said "the pain needs to be broadly shared" in getting the nation's debt under control.

“We understand the necessity of getting something done, but we are concerned about the affects on real people on the state taxpayers,” said Markell, a Democrat.

Later in the day, Markell revisited the issue in a live interview on PBS Newshour alongside Wisconsin Gov. Scott Walker, a Republican.

"Just shifting an obligation from a federal taxpayer to a state taxpayer really doesn't achieve much," Markell said.

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