During January, governors across the country gave their State of the State addresses. While the ever-present issues of improving education and creating jobs were mentioned, a decidedly concerned tone fell over the issue of health care, particularly around costs.
As health care expenditures continue to grow, the states will continue to make difficult budget choices. In fiscal year 2005, Medicaid surpassed K-12 education as the largest single item in state budgets and it remains the fastest growing item overall.
Governors showed remarkable variation on how they characterized health care. For example, some called health care a “right” or even a “fundamental right”, calling for action as a moral matter or as a means to help their residents avoid personal bankruptcy. Others called health care “critical to the health of citizens,” and made a case for economic investment in health. Still other governors linked health care to the social contract, declaring that “every working person deserves access to health care.”
Many of the speeches singled out rising health care costs and increasing hardship for small businesses and the working uninsured. Governors proposed a variety of means to reduce the burden for small businesses and to provide access to care for the working uninsured (e.g., reinsurance proposals, tax credits). Other issues addressed by the governors were the nursing shortage, medical malpractice insurance reform, strategies to encourage healthy lifestyles, and funding increases for community health centers.
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