Kansas Health Institute | Information For Policy Makers. Health for Kansans.

WASHINGTON, D.C. — Governors called on Congress today to OK an extension of Medicaid funds proposed in a tax and benefits bill, predicting thousands of possible layoffs and hamstrung state budgets if the federal government doesn't come through.

Kansas Gov. Mark Parkinson was one of four Democratic governors who joined a telephone press conference organized by the left-leaning Economic Policy Institute to make the case for the additional federal aid.

But it was conservative Republicans in the Kansas House who first proposed adding the so-called "FMAP extension" dollars into the state's fiscal 2011 budget, which begins July 1. They proposed counting the money as part of their plan to avoid a tax increase. The idea was then incorporated into the final spending plan as a way to minimize the tax increases ultimately approved.

Kansas is now one of more than 30 states that have already built the FMAP money into their budgets and one of a dozen or so that has no contingency plan if Congress nixes the extension of a higher federal match for Medicaid that started with the economic stimulus package of 2009 but is scheduled to end Dec. 31.

The proposed six-month extension looked reasonably certain until last month when U.S. House leaders stripped it from H.R. 4213 as they sought to gain votes from fiscally conservative Democrats who were lining up with Republicans against the bill because of its cost.

U.S. Senate leaders earlier this week endorsed adding that money, $24.2 billion, back into the bill but Republicans remain opposed, some Democrats are on the fence, and Senate rules require 60 votes to get the bill on the floor for debate without filibuster. The bill's total price tag is now about $142 billion.

The persisting uncertainty has created a flood of entreaties to senators from state leaders and groups that represent health care providers such as nursing homes.

Parkinson ordered a 10 percent reduction in Medicaid reimbursement rates in January as a stop-gap to close budget holes created by weak state receipts due to the recession. The Legislature restored the rate cuts but it remains unclear whether that restoration could remain in place without the additional Medicaid help from Congress.

During the press conference, according to CQ.com, Parkinson said Kansas is beginning to come out of recession but without the extra Medicaid dollars there would be “a real possibility” of teacher layoffs because 63 percent of the state budget is for education.

Parkinson said without the money as many as 4,000 teachers could lose jobs.

Other governors made similar comments.

Washington Gov. Christine Gregoire said if her state doesn't get the $480 million it banked on, it would have to reduce medical services to the poor, cut provider reimbursements or lay off of about 6,400 state workers.

California faces a loss of $1.8 billion.

The bill also includes provisions that would restore a 21 percent cut in Medicare payments to doctors that became effective June 1. That portion of the bill seems to have wide support in the U.S. House and Senate.

Parkinson has been in Washington, D.C. since Monday also to attend meetings of the Governor's Military Council, which he chairs.