Dear  Friend,
 

We’ve  all heard the Senate health care bill referred to as “The Louisiana Purchase”  because of the $300 million provision in it related to our Medicaid match  rate.  I don’t like the nickname for two reasons and today I  went to the floor of the U.S. Senate to explain why.  First, the fact  that we have to pay a higher Medicaid match under present law because of the  hurricanes is a real inequity.  Second, the phrase makes it sound like  Louisiana would fare well under the bill.  Nothing could be further from  the truth. 

When  you look at the overall costs to Louisiana, it should be called “The Louisiana  Sell–Out.”

Let’s  start with Medicaid, the health care program for the poor.  This provision  is a benefit to the state but there’s also a dramatic expansion of Medicaid  which Louisiana state government and taxpayers will have to help pay for.   That will cost the state at least $1.3 billion over ten years, far more than  the $300 million benefit.

And  the $300 million is a one–time benefit while the $1.3 billion per decade is  forever.  Governor Phil Bredesen of Tennessee, a Democrat, has called this  new burden “the mother of all unfunded mandates.”

And what about the  Louisiana seniors who depend on Medicare, which is already facing  insolvency?  The bill cuts Medicare by $466 billion and, instead of fixing  this, it steals almost half a trillion dollars from Medicare to pay for a new  entitlement.

The  bill contains $518 billion of tax increases nationwide.  And as for that oft-repeated  promise that no one who earns under $200,000 will be affected…think  again.  42.1 million of those earning under $200,000 will pay higher  taxes.

We’ll  also pay more for higher insurance premiums because, as the Congressional  Budget Office reports, the bill increases health care costs overall.

And  the bill doesn’t protect Louisiana small businesses in the middle of this  serious recession.  Most businesses will have to provide a  government-defined health insurance benefit to their employees or pay a new  government tax.  The National Federation of Small Business says that would  cost the nation at least 1.6 million jobs.  That would mean tens of  thousands of lost jobs in Louisiana, on top of our current high unemployment.

This  new mandate would also create an incentive for businesses to dump their  employees off their health plans, because it would be cheaper to do that and  pay the new tax.

And  the bill forces pro-life taxpayers to support and subsidize abortion.   That’s particularly offensive in Louisiana, one of the most proudly pro-life  states in the nation.

If  we truly want to put Louisiana first, we must say no to this bill.  Even  with the $300 million provision, Louisiana comes out way, way behind.

 
Sincerely,

David Vitter
U.S.  Senator