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Medicaid expansion questioned

Jim Mann | Hagadone News Network | UPDATED 12 years, 9 months AGO
by Jim Mann
| February 26, 2013 9:00 PM

HELENA — As lawmakers work on a fast clip to meet a midsession deadline for important legislation this week, they are well aware that Congress is barreling toward a deadline that will have impacts on states.

The March 1 sequester deadline that will trigger automatic cuts in federal spending if action isn’t taken is a reminder of another large and looming question — whether Montana should embrace the federal Affordable Care Act with an expansion of the state’s Medicaid program.

“When you’re looking at sequestration and know that can affect us and then you look at this [Medicaid expansion], I think you have to look at the long-term viability of what taxpayers will be asked to do,” said Speaker of the House Mark Blasdel, R-Somers.

Blasdel pointed out that $4 or $5 out of every $10 spent by the state comes from the federal government and he believes there are plenty of indications that federal support for states will wane over time.

For states that expand their Medicaid roles, the Affordable Care Act is supposed to pick up the full cost for the first three years.

It’s a carrot that has been tempting for many states, most recently with New Jersey’s Republican Gov. Chris Christie jumping on board Tuesday.

Montana Gov. Steve Bullock, a Democrat, is expected to come out with a similar proposal, but he cannot act without the approval of the Republican-controlled Legislature. And the Republican leadership has clear concerns about Medicaid expansion.

“What Montanans have to ask themselves is, ‘Do we want to increase welfare?’” said Senate Majority Leader Art Wittich, R-Bozeman. Wittich said when Medicaid was started in Montana in 1967, it cost $7 million. But in the 45 years since, it has grown to cost $1 billion to cover 90,000 people.

If the program is expanded to make more people eligible, its costs will grow.

The state currently covers 34 percent of Medicaid while the federal government covers 66 percent. If the state expands the program, Wittich said there are widespread expectations that ratio eventually will return.

“I don’t understand the math of spending more on Medicaid and expecting the federal government” to continue to be able to pay the tab, he said.

Although the governor has not come out with legislation for Medicaid expansion, the Democratic caucus is on board, said Rep. Ed Lieser, the lone Democrat in the Flathead delegation.

“The governor has asked us to support it, and we will support the expansion of Medicaid,” said Lieser, who represents Whitefish House District 4.

Rep. Pat Noonan, D-Ramsay, has introduced a Medicaid expansion bill. Blasdel described it as a “bare bones” bill and he expects the governor’s proposal to be more detailed.

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