Gov. Martin O?Malley?s plan threatening to slash hundreds of millions in healthcare funds if the legislature fails to pass his tax-increase package caught the ire of health care professionals imagining the worst and Republicans denouncing the strategy as “fear tactics.”
“I don?t think this doomsday budget will come to pass,” said Howard County Health Officer Peter Beilenson, a Democrat. However, failure to resolve the tax debate at the state level could compromise the county?s health care access program by flooding it with the newly uninsured.
O?Malley?s cuts would strip nearly $400 million from health and mental health funding, and nearly $17 million in health and biotechnology research if a slots and tax package doesn?t pass to fill a $1.7 billion budget hole.
He released the package as a “worst-case scenario” ahead of the special session convening next week, spokeswoman Christine Hansen said. “No one, especially the governor, wants to see these cuts go through, but that?s the cost of doing nothing.”
Republicans say health care is one of a number of cuts targeted for their fear value.
“He?s chosen issues that he believes will strike the most fear in people,” said John Flynn, director of the Maryland Republican Party.
The effect in Baltimore alone would be catastrophic, Health Commissioner Dr. Josh Sharfstein said.
“He?s mentioned some pretty serious cuts to the substance abuse program,” Sharfstein said. “That would mean probably about 1,000 people thrown out of drug treatment every day.”
Other changes, including a bare-bones increase in local health agency funding required by law, would cost the city about $1 million next year. Sharfstein said that would compromise Baltimore?s HIV-testing program, forcing the city to close one of two testing clinics.
O?Malley?s budget cure would also apply to Medicare and Medicaid recipients.
A $240 million bite out of Medicaid would cut funding 10 percent, including a proportional reduction in payments to nursing homes as well as cutting prescription drugs and programs for “medically needy” populations.
Retirees covered by Medicare?s prescription drug program would also see their benefits evaporate ? for a savings of $34 million statewide.
“This could be a terrible disaster for the people of Maryland if the governor?s cuts were to happen,” said Vincent DeMarco, executive director of the Maryland Health Care for All coalition.
He called such cuts shortsighted, because consistent health care coverage today saves money at the emergency room later on.
Proposed health care cuts
The cost of Gov. Martin O?Malley?s $1.7 billion budget cuts if higher taxes and slots are not approved in the special session.
» Reduce local health funding over statutory minimum: $7 million
» Cut Medicaid funding 10 percent: $240 million
» Reduce substance abuse funding: $22 million
» Cut mental health and developmental disabilities programs: $92 million
» Abolish prescription drug coverage for Medicare eligible retirees: $34 million
» Cut nano-biotechnology, biotech tax credit and stem cell research: $16.75 million
Source: Cost of Delay Budget Reductions, Gov. Martin O?Malley
