The Hill News

Governors have a unique perspective on how this historic recession has strained our budgets and challenged the ability of states to fund Medicaid -- the key safety net program for 60 million of our poorest Americans. Most states are required to balance their budgets, and with the recession drastically reducing state revenues, governors across America, myself included, have been forced to make difficult decisions. Since Medicaid is a substantial part of every state budget, the program is often a prime target for budget cuts.

Facing the worst economic downturn since the Great Depression, it is no surprise that some governors are now considering “opting out” of Medicaid completely and considering ways to provide essential services on their own. While I respect the challenging decisions faced by every governor, simply opting out of Medicaid is not the answer. In fact, it would open a Pandora’s Box of new problems.

Not only would a Medicaid opt out result in a state losing the considerable federal funding match, leaving it with far fewer resources to provide ongoing care, it would cause rampant healthcare job losses. This would be directly at odds with the top policy priority in Washington and every state capital -- creating jobs.

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