Network Indiana
INDIANAPOLIS — Gov. Mike Braun’s directive for Medicaid providers to cease all advertising on TV and radio in the state is getting a lot of pushback from local broadcasters throughout the state.
“Unfortunately, all you are doing is punishing small businesses in Indiana,” said Dave Arland with the Indiana Broadcaster Association. “Having a revenue stream cut off like this does have an impact.”
The directive laid out by Braun earlier this week urges Medicaid providers to stop buying advertising on TV and radio stations in an effort by the Braun administration to wean people off of Medicaid. He believes this avenue will work towards saving the state money.
However, Arland tells WISH-TV that many local broadcasters rely on this advertising revenue, especially in a day and age where cutbacks have become somewhat of a norm in the industry.
“We feel singled out, quite frankly,” he said. “We don’t think it’s appropriate to simply cut off TV and radio advertising. “There are contracts that have been put in place with the agencies that buy this [commercial] time and they have called and said, ‘stop’. And we feel that’s inappropriate.”
The IBA represents nearly 200 radio and television stations across the Hoosier state, which collectively employ 48,000 employees. The National Broadcasters Association has even taken notice of the issue, saying that the directive may even have “significant First Amendment concerns” since they say this is essentially a government agency directing a business to stop advertising a legal service.
“It would be good to have a better explanation,” Arland said. “Is this temporary? Is this permanent? How does this help us address our Medicaid issue in the state?”
At the moment roughly two million Hoosiers rely on Medicaid. That’s around one out of every four Hoosiers. Braun and other state leaders are looking to narrow a nearly $1 billion Medicaid funding shortfall the state is contending with.
