President Barack Obama told the National Governors Association on Monday that he supports waivers for states that want the flexibility to pursue new health care programs.
The announcement could pave the way for congressional approval of changes to the health care reform law enacted last year.
Vermont’s Democratic Gov. Peter Shumlin was elated by the news, which he said would make it possible for Vermont to more effectively pursue a plan for a single-payer health care system. Shumlin, who took office in January, has made single-payer his No. 1 initiative.
The White House endorsed a bill, the bipartisan “Empowering States to Innovate Act,” which would enable states to obtain “state innovation waivers” in 2014. Under current law, the waivers aren’t available until 2017.
The president’s announcement was made on the last day of the association’s meeting. Shumlin, whose comments on collective bargaining and the U.S House budget cuts made news on a D.C. political website, said Obama wants to give states flexibility so that they can be the “laboratories for universal access and cost containment” in 2014.
“Without that, we can’t pass a single-payer system that contains costs,” Shumlin said. “I told the president one of our biggest challenges is double-digit health insurance increases. It’s a jobs killer. If we have to wait until 2017 to get costs under control, we’re dead in the water – we can’t create jobs.”
Shumlin said he sat next to the Republican governor of Utah, Gary Herbert, who wanted the same kind of flexibility, but for different reasons. (Herbert recently called the federal law, which ends discrimination against patients with pre-existing conditions, “an unfunded mandate.”)
Link to information about the Federal health care law
Vermont’s congressional delegation embraced the news that Obama threw his support behind legislation that will enable states to have more flexibility under the Affordable Care Act. Sens. Patrick Leahy and Bernie Sanders and Rep. Peter Welch all supported an amendment introduced last month that had a similar thrust.
In a statement, Democrat Leahy said: “This is a wise decision that keeps in focus the goal of continually improving health care in America. I applaud President Obama and Secretary Sebelius for supporting efforts by Vermont and other states to go above and beyond what the Affordable Care Act requires. They know that the federal government does not have a monopoly on good ideas, and innovations by the states will prove – and improve — the benefits of health insurance reform, on the ground and in practice.”
In a joint press release, Sanders, an independent, said: “At a time when 50 million Americans lack health insurance, and when the cost of healthcare continues to soar, it is my strong hope that Vermont will lead the nation in a new direction through a Medicare-for-all, single-payer approach.”
“This legislation will give Vermont a green light to lead the nation in providing quality health care at a lower cost,” Welch, a Democrat, said.
The waiver legislation is still wending its way through Congress, but the support from Obama is key, an aide to the delegation said.
Anya Rader Wallack, special assistant to Gov. Shumlin on health care reform, said “It’s wonderful news. We still have to pass legislation to have this have an effect, but having the president’s support is tremendously helpful. If it means ultimately we’re able to get legislation through, we can as a state begin planning immediately and talk with the feds about a system in Vermont that doesn’t have to adhere to all the requirements of the Affordable Care Act.”
Shumlin was in Washington, D.C., for three days of meetings with other governors, the president and members of the congressional delegation.
Shumlin kicked off his visit with a keynote address to the Pew Center on Global Climate Change. Over the weekend, he met with members of President Barack Obama’s Cabinet, other White House officials and Vice President Joe Biden. On Sunday, he met with the premier of New Brunswick and participated in special meetings with governors from the Northeast and New England.
While Shumlin was at the Capitol, he had an interview with Politico.com in which he denounced the U.S. House proposal to cut appropriations for key human services programs in fiscal year 2011 that he said could jeopardize the lives of poor Vermonters. Funding for Low-Income Heat Assistance Program, Head Start, Planned Parenthood and Community Services Block Grants would all take a hard hit under the budget plans. A myriad of other programs are also under the knife, including child care subsidies, community policing programs and the Environmental Protection Agency.
Congress is deadlocked on the interim spending bill for fiscal year 2011.
If Republicans and Democrats can’t agree on a measure soon, the nation faces a government shutdown.
Shumlin told Politico.com: “You start cutting our [Low-Income Heat Assistance Program] funding in half, Vermonters freeze in their homes. We’re a cold state.”
At a press conference last week, Shumlin said the cuts make his job of balancing the state’s budget, which includes a $176 million revenue gap, even more difficult.
Read Shumlin’s NGA letter, Page 1
Read Shumlin’s NGA letter, Page 2
Shumlin also reprised his role as chief booster for local unions in D.C. He was the only governor at the NGA who addressed a group of union protesters near the hotel where the NGA winter meeting was held.
The Hill.com reported that Shumlin told the crowd: “I just want to say that not all governors are one and the same. In Vermont, we know that we have more success with maple sugar than we do with vinegar.”
In an interview, Shumlin said he had productive talks with Ray LaHood, secretary of transportation, who supports Vermont’s effort to develop high-speed rail from Vermont to Montreal (with a spur to Boston). He also talked with Arne Duncan, secretary of education, about federal funding for early childhood education.
The event was capped off with a meeting with President Obama and First Lady Michelle Obama and a performance by Gladys Knight.
