Tagged: medicaid

Part of the Affordable Care Act (aka Obamacare) calls for an expansion of the Medicaid program, but some state legislators and governors are resisting the expansion.

Michigan Governor Rick Snyder is NOT one of those governors resisting.

When he announced his support for the expansion last month, he said it was about being "financially responsible."

Republicans in the Michigan Legislature, however, seem to disagree.

Expanding state Medicaid programs is part of the new national health care law.

Many Republican state lawmakers say it will cost Michigan taxpayers over a billion dollars during the next decade. But there’s a cost to large Michigan businesses if they don’t.

“Actually, taxes could go up on employers in states that don’t expand Medicaid,” says Brian Hale, the senior vice president for health policy at Jackson Hewitt Tax Service, “You need to factor that in to the decision about whether or not to expand Medicaid.”

Michigan Gov. Rick Snyder will unveil his budget this morning at 11 a.m.

Then the leaders in the Legislature will wrestle with the numbers and push their priorities for state spending and income.

Watch Snyder's budget unveiling here:

Governor Rick Snyder  yesterday cast a vote for common sense and pragmatism, by coming out in favor of  expanding Medicaid to what will, within a decade, include almost half a million  people.

Putting purely human considerations aside, the deal makes  enormous economic sense for Michigan. The federal government will pick up all  the costs of the Medicaid expansion for the first three years.  After that,  Michigan has to kick in a tiny amount which will never exceed ten percent. But  from day one, the feds will cover a lot of expenses Michigan pays for today.

The  governor’s staff says this will amount to $206 million dollars next year alone. His budget would prudently stick half those savings in a special  fund to save for the day when Michigan does have to pick up a tiny share of the  expanded Medicaid costs.

Patient advocates and healthcare organizations are cheering Governor Rick Snyder’s decision to seek an expansion of Medicaid eligibility under the new federal healthcare law.

The expansion would eventually allow 450,000 people to be added to Medicaid, and sharply reduce the ranks of the un-insured in Michigan.

The governor says it would also reduce the overall cost of healthcare in Michigan. And part of the savings can be banked to cover Michigan’s future costs of the Medicaid expansion.

“This is about being financially responsible," said Snyder. "Just like you’d be setting up at home, let’s set up a health savings account here, to cushion for shocks, for unexpected events, and then to have a thoughtful stream of dollars to minimize costs for the long-term."

Health care groups, patient advocates, and some business groups also support the expansion.

They say unnecessary emergency room visits and people who wait to get treated are driving up the cost of care and the cost of health insurance.

Kris Nicholoff is with the Michigan Osteopathic Association. He says that would eventually almost cut in half the number of people in Michigan who don’t have health insurance.

“450,000 people will get coverage that don’t have it right now. Now, you’ve been to the University of Michigan’s football stadium? Four times that. Picture that right now – four times that full patients will receive care if we expand Medicaid," said Nicholoff.

The Medicaid expansion will be part of Governor Snyder’s budget proposal. It will be presented tomorrow. Then it has to be approved by the Legislature. The governor says the expansion will save money in the long-term.

Advocates for the uninsured are pressing Governor Rick Snyder to call for an expansion of Medicaid in Michigan. They delivered more than 4,000 petition signatures in favor of an expansion to the governor’s office yesterday.

Under the federal healthcare law, the state could let nearly 400,000 uninsured residents join the program. The federal government would cover the cost for three years. After that, the state would be responsible for up to ten percent. 

Liz Lamoste, with the group Medicaid Matters for Michigan, says the state should take advantage of the offer.

“If the offer’s on the table, we should be in a position to take advantage of it, especially because it makes financial sense for Michigan, and hundreds of thousands of people are relying on us to take prudent responsible action to provide people with more coverage," said Lamoste.

Many Republicans in the Legislature say they don’t trust the federal government to keep its promises. Governor Snyder will announce his plans for Medicaid on Thursday when he unveils his new proposed budget.

The following is a summary of a previously recorded interview. To hear the complete segment, click the audio above.

Is the State of Michigan going to expand its Medicaid coverage? That's the question on the front burner at the Governor's office these days as he prepares to unveil his new budget to the Legislature this week.

Cyndy spoke with Detroit Free Press reporter Kathleen Gray who helped break down the Medicaid program in the state and talked to us about the pros and cons of expanding Medicaid coverage to another half a million people.

The Affordable Care Act will assist states in expanding their Medicaid eligibility limits for adults to 133 percent of the Federal Poverty Level, (that's and income of about $14,860 per year for one person).