Medicaid expansion is a good deal - COVER IDAHO!

Through the Affordable Care Act, Idaho has the opportunity to expand Medicaid to cover low-income Americans with incomes at or below 138% of the poverty level, with the federal government covering most of the costs. The Affordable Care Act (ACA) was supposed to expand Medicaid to cover everyone within 133% of the federal poverty level by 2014; however, when the Supreme Court ruled that the federal government could not enforce this expansion, it allowed states to opt-out.

But it makes sense for states to opt in; under the health care reform law, the federal government will pay the full cost of covering newly eligible people from 2014 to 2016, then scale back funding to 90 percent in 2022 and later years. If every state were to participate, the total increase in state spending would amount to just 3 percent while millions would gain health coverage, according to an analysis by the Urban Institute and the Henry J. Kaiser Family Foundation.

Governor Otter in his 2013 State of the State and Budget Address rejected Medicaid expansion despite tremendous federal support. The governor's decision also contradicted a unanimous recommendation from a commission appointed by Otter that the state take advantage of the available federal funding to broaden Medicaid. Then in July, Gov. C.L. Otter (R) appointed a 15-member group to explore whether or not Idaho should expand Medicaid.

In November, the panel recommended that the state expand and reform its Medicaid program in order to "do something right" and save money. Otter then directed the state’s Health and Welfare director to “flesh out a plan” to reform Idaho’s Medicaid system, which could be taken up by the Legislature in 2014.

We believe Medicaid Expansion is crucial for Idaho because:

As of October 2013, 222,533 Idahoans have no health insurance, which comprises nearly 20% of the states total population

There are about 100,000 low-income adults in Idaho who don’t currently qualify for Medicaid. Currently taxpayers cover their medical bills through the state’s Catastrophic Fund. Idaho could add 88,000 poor people to Medicaid under the ACA expansion, and 19,000 people already eligible under today's rules, but not enrolled, also may sign up for coverage.

According to the U.S. Census Bureau:

The state pays for their health care with indigent funds at the county level and the Catastrophic Fund at the state level. That equates to about $75 million per year, which is 100% Idaho taxpayer money. As a result insurance premiums are higher, because the hospitals and doctors shift the cost of the uninsured onto those of us who have insurance. And, there are about 7500 bankruptcies in Idaho and about half are due to the inability to pay their medical bills.

The state would spend an additional $261 million from 2013 to 2022 to cover these individuals and the federal government would send $3.7 billion to Idaho, a net financial gain for the state. And, affordable healthcare insurance coverage puts more money in the pocket of patients who are more likely to support local businesses and thereby growth of the economy

Providing affordable coverage to our most vulnerable individuals will prevent more life threatening and disabling disease that will ultimately incur greater costs to our state. For now, the federal poverty level is an income of $11,490/year for a one-person household, or $15,510 for a two-person household.

If Idaho does not expand Medicaid:

• It will be harder/costlier for large employers to meet the 2014 requirements toprovide employee health insurance;

• It will harder/costlier for small businesses to offer insurance to their employees;

• There are financial implications of being a state that is seen as being hostile to its poor, elderly, sick and disabled; Hostile to industry and new businesses looking to Idaho; It will make Idaho less attractive to businesses considering relocation;

• Federal taxes paid by Idahoans will go to other states that do expand Medicaid;
• The health care needs of Idaho’suninsured remain unmet (the safety net is unable to address current needs);

• A huge, inequitable gap is left between the people currently eligible for Medicaid and those with income higher than 100% of the poverty line who could purchase private insurance through the Exchange;

• Idaho loses the substantial economic benefit from the infusion of billions of federal dollars.

United Action for Idaho, and the undersigned share a commitment to securing healthcare as a human right under an improved and expanded Medicare-for-all model. Protecting the current expansion of Medicaid is a small but necessary and life-saving step.