Yesterday, Governor Dennis Daugaard outlined a budget proposal to cut 10 percent across the board, citing his desire to close the structural deficit within one year and calling for everyone to share in the sacrifice.
While the SD Campaign for Healthy Families understands the severity of the budget crisis – not all spending cuts are equal. When the state cuts $30 million from its’ Medicaid budget, we lose $40 million in federal matching funds that go to providers. So, while the state saves $30 million, healthcare providers lose $70 million in reimbursements. Health advocacy professionals predict that some primary care and family practice physicians will be forced to limit the number of Medicaid patients they see - effectively restricting access to affordable care for families.
That’s no small sacrifice. According to the South Dakota Budget and Policy Project, “One of every three South Dakota children is insured by CHIP/Medicaid” and 80 percent of new enrollees over the past two years have been children. Slashing Medicaid funding will negatively impact thousands of women and families across South Dakota to depend on the program for healthcare.
To make matters worse, such drastic budgetary measures may not even be necessary. The state currently has $107 million in budget reserves and another $800 million in trust fund accounts that could be tapped to reduce the deficit, rather than jeopardizing health care for women and families in need.
As legislators debate Governor Daugaard’s proposal, we hope they debate the merits of specific programs and understand across-the-board budget cuts will impact some more than others.