HotAir falsely suggests "Louisiana purchase" doesn't have "anything to do with health care"

HotAir.com: "I just don't see how disaster relief has anything to do with health care"

From Fiano's March 17 HotAir.com post:

This moment, from Bret Baier's interview on Fox News with Obama, might just be one of the biggest "WTF?!" moments from Obama's presidency yet. Obama is either completely making things up, living in an alternate reality, or really, really confused.

Actually, my guess is that's it's probably a combination of all three.

OBAMA [video]: I'll give you some exceptions, though. Something that was called a special deal was for Louisiana. It was said that there were billions of dollars -- millions of dollars going to Louisiana, this was a special deal. Well, in fact, that provision, which I think should remain in, said that if a state has been affected by a natural catastrophe that has created a special health care emergency in that state, they should get help. Louisiana obviously went through Katrina, and they're still trying to deal with the enormous challenges that were faced because of that. ... That also -- well, I'm giving you an example of one that I consider important. It also affects Hawaii, which went through an earthquake. So that's not just a Louisiana provision. That is a provision that affects every state that is going through a natural catastrophe.

Apparently, there was a devastating earthquake in Hawaii that we all somehow missed.

Oh, wait, no. That's right. There was no earthquake, and Obama is just totally clueless, as usual. In fact, the last earthquake in Hawaii to cause any deaths at all was in 1975, and two people died.

In any case, why is he using this argument, anyways? He's turned this health care bill into a one-size-fits-all solution for everything. Not only will it fix our health care, but it will apparently create jobs and give disaster relief around the country!

Maybe I'm the only person who doesn't get it, but I just don't see how disaster relief has anything to do with health care. This is just more evidence that Obama is just talking out of his you-know-where now. He's become this desperate. And you know, I say good. That means we're getting to him, and now's the time to push even harder.

Health care bill provision fixes Medicaid gap caused by recent natural disasters

Funding would fix FMAP rates for "certain states recovering from a major disaster." The Senate bill as passed includes a provision -- often referred to as the "Louisiana Purchase" by conservative media -- that would adjust the Federal Medical Assistance Percentage (FMAP) rate for "certain states recovering from a major disaster." The bill requires that it only applies to states "for which, at any time during the preceding 7 fiscal years, the President has declared a major disaster" and "determined as a result of such disaster that every county or parish in the State warrant individual and public assistance or public assistance from the Federal Government."

The Department of Health and Human Services states that FMAP is "used in determining the amount of Federal matching funds for State expenditures for assistance payments for certain social services, and State medical and medical insurance expenditures. The Social Security Act requires the Secretary of Health and Human Services to calculate and publish the FMAPs each year."

Times-Picayune: Temporary post-Katrina spending "spiked" per capita income "long enough" to skew Medicaid funding formula, causing state Medicaid funding shortfall. The Times-Picayune reported on January 22 that "FMAP refers to the percentage of a state's payments under Medicaid that are covered by the federal government. Louisiana usually gets a higher match because of how poor the state is, but because of all the recovery and rebuilding money that poured in after Hurricanes Katrina and Rita, state per capita income spiked long enough to throw the formula out of kilter and threaten to blow a hole [in] the state budget. [Sen. Mary] Landrieu's fix was, according to state officials, only the beginning of a solution for a huge Medicaid shortfall the state is facing." The article stated that Landrieu said "attaching the Medicaid provision to a health-care bill made sense, and there is no obvious and feasible legislative alternative."

Jindal: "If not corrected in Washington, D.C.," FMAP problem will cost $500 million a year. Louisiana Republican Gov. Bobby Jindal's fiscal year 2010-2011 budget proposal says that the "Louisiana state government faces significant, multi-year budget challenges, compounded by a faulty federal FMAP formula that, if not corrected in Washington, D.C., will cost the state approximately $500 million a year in Medicaid funding, impacting services for the poorest in our state, and often those who need care the most." The proposal also says that "[w]hile there is discussion in Washington about extending the enhanced federal Medicaid match rate for six months for all states, without a permanent fix to Louisiana's faulty FMAP calculation, combined with the loss of federal stimulus funding, Louisiana will still face a projected $1.7 billion shortfall for FY 12."

HotAir post oblivious to 2006 Hawaii earthquake

Hawaii was declared a disaster area following earthquake. During the Fox News interview cited by HotAir, Obama stated that Hawaii could benefit from the health care bill provision that helps Louisiana deal with the FMAP problem. The HotAir post responded: "Apparently, there was a devastating earthquake in Hawaii that we all somehow missed. Oh, wait, no. That's right. There was no earthquake, and Obama is just totally clueless, as usual." In fact, a magnitude 6.7 earthquake hit Hawaii on October 15, 2006, as Media Matters for America noted. At the time, President Bush "declared a major disaster exists in the State of Hawaii and ordered Federal aid to supplement State and local recovery efforts in the area struck by an earthquake." USA Today also reported that Hawaii Gov. Linda Lingle also issued a disaster declaration for the state, after reports of damaged buildings, landslides, and power outages.

Times-Picayune: Hawaii might also be eligible for aid under health care reform. The Times-Picayune reported on February 23 that the provision "was intended as a one-time, partial fix for a sharp drop in federal Medicaid money coming to the state because of a temporary surge in per capita income in Louisiana as recovery dollars flooded into the state in the wake of Katrina and Rita." The article noted that Hawaii could also be eligible for aid under the Senate health care reform bill:

In order to qualify, a state would have to face an FMAP decline of a magnitude that would only include at this time three states: Louisiana, North Dakota and Hawaii. The legislation also requires the state be one that experienced a major disaster in the past seven years in which every county or parish in the state was eligible for FEMA public assistance. That would eliminate North Dakota, leaving only Louisiana and Hawaii, where all four of its counties were eligible for aid after the 2006 earthquake.

Hawaii officials reportedly pursuing FMAP funding. A March 11 Times-Picayune article quoted a Hawaii Department of Human Services spokeswoman as saying they are "optimistic we will find a way to get the FMAP provision," amid some confusion over whether Hawaii will ultimately qualify for the fix.