The state’s ailing budget cannot be cured without first gaining control of rising health care costs, said Maryland Gov. Martin O’Malley during a phone conference Thursday morning organized by the Democratic National Committee.
“[Health care costs are] the single largest part of our budget,” O’Malley said, and one that could “crowd everything else out of the picture.”
Maryland has made $735 million in cuts to this year’s state budget and is searching for an additional $300 million to cut in order to balance the budget when the fiscal year ends in June.
O’Malley cited education and public safety as services that may be at risk if health care costs are not put in check soon.
Speaking Thursday in support of President Obama’s goals for health reform, O’Malley said the state’s health care costs grow at a rate of 7 or 8 percent every year and promise to continue to do so if no changes are made.
“If we do nothing it’s going to be nearly impossible for us to be able to keep up with those escalating costs,” he said.
Maryland Sen. Richard Colburn, R-Dorchester, agreed that health care might play a role in fixing Maryland’s budget, but said it shouldn’t be seen as a cure-all.
“There is a possibility that the health care plan will help Maryland’s budget, but our problems are deep and we’re going to have to face some tough cuts in an election year 2010 session,” Colburn said. “We have to move ahead no matter what they do in Washington.”
O’Malley praised the federal government for stepping in to help the state at a time when it needs it, comparing the challenge Maryland faces with those of small business owners who also must scramble to find a way to provide affordable health care to their employees.
“I think the key, the real key, is making sure everyone is covered,” O’Malley said.
- By Capital News Service’s Karen Anderson.