Obama Hands States $15B For Medicaid

President Tries To Address Governors' Concerns Over Spending; Biden To Oversee Stimulus

(CBS/AP)  President Barack Obama said Monday he would begin distributing $15 billion to the states within two days to help them with Medicaid payments to the poor.

The money will begin reaching the states Wednesday from the newly passed $787 billion economic stimulus program, Mr. Obama told the nation's governors during a meeting at the White House.

The recession has had a huge impact on state budgets, and one area public officials are struggling with is in meeting costs in the Medicaid program for the poor. The program is underwritten jointly by states and the federal government.

Speaking to state chief executives at the close of the three-day winter session of the National Governors Association, Mr. Obama also addressed concerns about the stimulus plan raised by a handful of Republican governors who have called the plan overly large and wasteful .

At issue is a proposed expansion of state unemployment benefits for part-time workers and others who where previously ineligible to receive the funding. Some GOP governors - several with an eye on the 2012 presidential contest including Mark Sanford of South Carolina and Bobby Jindal of Louisiana - say they may not accept that funding because it will require a tax increase on employers once the stimulus money runs out.

Mr. Obama addressed that critique directly, and warned against allowing political considerations to cloud a discussion of the stimulus program.

"I think there are some very legitimate concerns on the part of some about the sustainability of expanding unemployment insurance. What hasn't been noted is that that is $7 billion of a $787 billion program. And it's not even the majority of the expansion of unemployment insurance," Mr. Obama said.

He added, "If we agree on 90 percent of this stuff, and we're spending all our time on television arguing about 1, 2, 3 percent of the spending in this thing, and somehow it's being characterized in broad brush as wasteful spending, that starts sounding more like politics. And that's what right now we don't have time to do."

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Click here to read President Obama's full comments

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Mr. Obama also stressed the need for accountability and transparency in how the governors spend the stimulus funds.

He named Earl Devaney, a former Secret Service agent who helped expose lobbyists' corruption at the Interior Department, to head the new Recovery Act Transparency and Accountability Board. Vice President Joe Biden also will be given a role coordinating oversight of stimulus spending, Obama said.

Mr. Obama created the board as an at-large body to oversee how the government spends the $787 billion stimulus package.

The president also was expected to begin showing his budget hand at a White House summit on fiscal policy before he travels to the U.S. Capitol Tuesday for his first address to Congress. Those invited to Monday's summit include independent experts, representatives of unions and advocacy groups, and members of Congress.

Federal regulators, meanwhile, pledged they will launch a revamped program to inject fresh capital into financial institutions starting Wednesday. Several regulatory agencies issued the statement Monday amid growing concern that some of the biggest U.S. banks may need additional assistance to survive the fallout from the worst financial crisis since the 1930s.

The statement did not name any specific banks or respond to reports that the government was considering increasing its ownership of Citigroup Inc. The White House just last week downplayed persistent speculation that some banks could be effectively nationalized by the federal government.

[warlock7734]

the ny state gov is cutting medicare so much for that idea

[mytimehcome]

You need to ask Bush about snorting the cocaine since he was a dope using alcoholic while his father was the head of the CIA. This past year was hard on him. I can tell that he fell off the wagon because he looks like he started drinking again. Too bad, so sad. Now Bush can call up his old pal OSAMA and they can go back in the oil business together again, just like old times.

[mytimehcome]

You people are incredible. I wish you all that you wish for yourselves. It was alright as long as we hard worked in this country and made the corporations more profitable than they have ever been. We (people of America) deserved better, but our greedy politicians and corporate midgets sold this countries productive future down the drain. Remember America (YOU REAP WHAT YOU SOW). Why would people who need so much help today attack and abuse the only entity that has given any thought to your poor mouth problems. Don't worry I'm sure you'll have plenty of time to screw up any recovery made by this great man President Obama!!! You should be writing George and his crew a thank you letter. I know I have... Thank you for being so bad for the country that we (the majority that won) got a wonderful, and decent President FINALLY. Thank God!!!

[roystoll2]

The stock market is in the toilet. Every American carmaker that has union workers, is on their death bed. The banks are dropping like flies. If it is okay with you, I''ll keep my money, my freedom & my guns & you can keep the "CHANGE"!

[markinga]

I dont know if you are being sarcastic when you point out that the Republican states have lower infant mortality rates. Actually, SC, MS, LA, GA, AL KY have the highest. Thats the sad part because their Senators consistently vote against Medicaid. I suspect its because of which babies are dying.

[quickthought]

All except the republican states that voted against it, right?

[markinga]

The U.S. has the highest infant mortality rate of all highly industrialized nations. If you have a problem with thissituation you shouldn't have a problem with increasing Medicaid.

[realamerica3]

Reckon this worthless POS learned to play these shell games on the streets of NY when he was snorting cocaine and supposedly attending Columbia, or is this something he learned in Chicago??

[mjvw2]

and how does this stimulate the economy?

[cattiej]

Does this mean that some people who get Medicaid and SSI because they used illegal drugs and continue to use Illegal drugs, almost everytime they get a SSI Check, will continue to be on the Medicaid rolls?
How many illegal aliens beside Obama's aunt are on Medicaid? If you get Medicaid you should have to do some type of community service when you are able to. Some people could clean along the roads where there is plenty of junk thrown out the car windows by messy people. Do illegal aliens also get unemployment money?

[markd75]

Mr. President:

I know I didn't screw up as bad as the banks or the states, but I did create a lot of bad debt and my receivable funds are not what they once were. And seeing as how the government (the people) are in such a generous mood for giving, I was wondering if you could possibly divert a few hundred thousand from the $787 Billion Economics Package and send it to me. I know this is only pittance compared to what some of these once mighty corporations that drove themselves into bankruptcy are going to receive, but if I continue to screw up I promise I'll ask for more.

Sincerely,

Another guy looking for an easy way out

[cpelzar--2008]

Seems Obama is going for the Dow Record. Will it close below 7000? It is currently down another -245 today so far.

[gopisajoke]

Not everybody getting Mediciad assistance is lazy and without jobs. You people saying those things probably know somebody that you respect that is being helped by Medicaid even if they haven't mentioned it to you. If you're not getting it, then be glad that you don't need it. Insurance companies lobby hard to be able to raise the prices and do what they want. The most health care rose during Clinton's terms was 4-7%. Bush's first four years alone were a minimum of 14% annually. Just like the rest of the financial mess, corporate greed makes things unaffordable and takes too much money out of the economy. Republicans do it everytime they have the power to. Look it up in your history books. Republicans ruin America, Democrats rebuild America. Remember that when you vote!!!!!

[rudy6543]

These people now have SCHIP which by the way Bush vetoed on numerous occasions. These people can make up to 40,000.00 per year and still qualify for insurance for their children.
If you make more than 40,000.00 a year and somehow have left your childs health insurance out of your monthly budget then you are no kind of parent and don''t deserve children anyway.


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Posted by demswin08 at 03:14 PM

I would like to see this extended to all, adults and children both. As it is, a parent does well to stay on welfare for the health care than get off. If parents finds a low wage job with no benefits, they will automatically be off welfare and have no health care, as well. I worked in the welfare office trying to get people to go to work, but often enough it made their life worse as they couldn't afford medical insurance.

[jon_mccain]

I guess we should listen to what the republicans are proposing we should do about the disaster they have created.

Lemme see, so far it is cut taxes. Hmmmm...... tried that, didn''t work.

What else.


Posted by johndevinejr

Don't forget regulation, according to Republicans we have wayyyy too much regulation.


Lastly, I would point out that their poster boy of a presidential candidate has advocated doing nothing....Of course he came to advocate this AFTER he suspended his presidential campaign, and tried to postpone the debates so he could rush back to Washington and reassure us that the fundamentals of the economy are strong.

[national4321]

Greed and Power were the downfall of the Republicans.
Democrats can't seem to do any better.In fact they can't think for themselves, hence the need to control you and tell you what you need,
They are sick bunch of F's.

[johndevinejr]

Someone needs to buy this moron a muzzle.


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Posted by realAmerica3


Since when are stupidity, cowardice and dishonesty traits of a real American. Those are the traits of the republicans.

[lalabradle]

Obama''s agenda is to take care of all the worthless minorities in this country by taking hard earned dollars out of the pockets of upstanding white people''s pockets.


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Posted by djh216 at 01:44 PM : Feb 23, 2009

That's funny since we all know that the good white folks are getting more handouts than anyone else. You know yall outnumber the rest of us by a whole hell of a lot. Maybe some of you lazy *** need to get jobs.

[johndevinejr]

I guess we should listen to what the republicans are proposing we should do about the disaster they have created.

Lemme see, so far it is cut taxes. Hmmmm...... tried that, didn't work.

What else. Blame everyone else. Or maybe they could blame everyone else.

I guess, they will just go with NO SOLUTIONS, BLAME EVERYONE ELSE.

[lalabradle]

What on earth has this idiot President shot his mouth off about today??

I see the DJIA is in the dumper again.

Someone needs to buy this moron a muzzle.


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Posted by realAmerica3 at 02:45 PM : Feb 23, 2009

Someone needs to buy you a muzzle.