Texas: Sixth State To Say No Thanks To Medicaid Expansion
By Faith Eischen | 07/10/2012 | California, Connecticut, Headline, Health Care, Issues, Louisiana, Texas | 5 Comments
Governor Rick Perry of Texas joins a list of growing states who say they will refuse to implement Medicaid expansion in their states. The one-time presidential hopeful stated yesterday, “If anyone was in doubt, we in Texas have no intention to implement so-called state exchanges or to expand Medicaid under Obamacare.”
Gov. Rick Perry’s decision makes Texas the sixth state to opt out of Medicaid expansion so far. Texas joins Florida, Louisiana, Mississippi, South Carolina, and Wisconsin in using their Supreme Court-given right to say no to the funding.
The Supreme Court ruled to uphold most of Obama’s Affordable Care Act provisions, but struck down the part of the law requiring states to expand Medicaid eligibility.
Perry’s office sent a letter to U.S. Health and Human Services Secretary Kathlen Sebelius making his opposition to the Bill official. In turn, by opting out of Medicaid expansion, Perry chose on behalf of Texas not to accept “more than a hundred million federal dollars over the next several years to put more poor Texas adults onto Medicaid.”
The Kaiser Family Foundation found that 1.4 million uninsured Texans would have received Medicaid coverage if Gov. Rick Perry had made the decision to participate in Medicaid expansion. This would cut the number of uninsured people in Texas by 49.4% by 2019.
Gov. Rick Perry said in his statement regarding his decision:
“… I will not be party to socializing healthcare and bankrupting my state in direct contradiction to our Constitution and our founding principles of limited government. I stand proudly with the growing chorus of governors who reject the Obamacare power grab. Neither a ‘state’ exchange nor the expansion of Medicaid under this program would result in better ‘patient protection’ or in more ‘affordable care.’ They would only make Texas a mere appendage of the federal government when it comes to health care.”
According to the Congressional Budget Offices, “if all states went ahead with Medicaid expansion, it would increase state spending on the program by $73 billion by 2022 – the equivalent of a 2.8% increase in what states would have spent on Medicaid from 2014 to 2022 in the absence of health reform.”
Out of the six states that have already publicly opted out of Medicaid expansion, three of them have uninsured rates higher than the national average, which is 16%. Louisiana: 17% uninsured, South Carolina: 19% uninsured, and Florida: 21% uninsured.
If more governors continue to opt out, or threaten to opt out, of the Medicaid expansion, the poorest Americans will suffer most. According to charts from Washington Post’s Wonk Blog, “People who earn less than 100% of the Federal Poverty Line, which is approximately $11,170 per individual, are ineligible for tax credits to purchase health insurance.”
Wonk Blog also stated in another article referencing Medicaid expansion that not only poor Americans would suffer, but also poor, childless adults are most in danger.
“Childless adults tend to have even lower eligibility in state Medicaid programs. Forty-three states do not cover single adults at any level of the poverty line. If those states opt out of the Medicaid expansion, adults without children would find themselves in a sort of donut hole: Ineligible for Medicaid but also too poor to qualify for federal subsidies.”
The Urban Institute cited under the current system, “state and local governments help hospitals offset the cost of care they provide to uninsured patients who can’t pay for medical care — paying about $10.5 billion, or 18.5%, of the cost of uncompensated care.” Thus, if Medicaid covered more patients, those high costs that state and local governments offset, would decrease.
The six governors that have opted out of Medicaid expansion arguably did so for ideological reasons. There is no denying that expanding Medicaid may cost more for states upfront, but the long-term outcomes of doing so prove to actually save states more money in the future, increase state budgets, and avoid increasing rates of uninsured Americans.
Ten states and the District of Columbia have chosen to participate in the expansion, which includes California, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Vermont, and Washington.
Ironically states that have already opted out of Medicaid expansion would have proven to be the highest beneficiaries. Kaiser Family Foundation concluded “the Medicaid expansion in the new law would cut South Carolina’s uninsured rate among eligible adults by 56.4%. This would be the fourth largest drop of any state in the nation.”





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5 Comments
Matt Metzner
07.10.2012
@mmetzner
Does the Governor have another idea for covering the 25% of Texans without health plans or will he sweep the problem under the rug?
Faith Eischen
07.10.2012
@faitheischen
Apparently this isn’t the first time Gov. Rick Perry has ignored this problem:
http://www.theatlanticwire.com/politics/2012/07/texas-where-25-are-uninsured-opts-out-medicaid-expansion/54320/
In 2010 he apparently toyed with the idea of getting rid of Medicaid entirely to fix the state’s deficit…
Wm. L. York
07.11.2012
Matt, although Texas may have the largest number of un-insured people in the nation, no-one is without medical care in Texas. Go to your local health clinic and pay nothing or what you can afford or go to your county hospital ( ours is one of the top rated hospitals in the nation). We will even send FREE transportation to get you there in my area of Texas. Get all the facts before you say anything. Yep, it costs Texans, but at least we are using out taxes for something good. The governor is sweeping nothing “under the rug”.
Bob Morris
07.11.2012
@Bob_Morris
I would help if folks here understood what socialism is, which is government ownership of the means of productions etc. Thus, Obamacare is not socialism because it doesn’t own healthcare facilities..
AJAY JAIN
03.29.2013
Hello Friends,
Governor Rick Perry millions of under-privileged poor Texans who do not have any Health Coverage will be covered under The Affordable Care ACT (ACA) expansion of MEDICAID!
My Physician wife’s practice is partly dependent on MEDICAID and its viability. Please allow the expansion of MEDICAID to occur in Texas under The Affordable Care ACT.
[b] FACT: If states choose to expand Medicaid, the federal government will cover 100 percent of the costs from 2014 to 2016. The feds’ contribution will begin to decrease in 2017, but will never be less than 90 percent, under the ACA. [/b]
That’s why I created a petition to Governor Rick Perry, Texas Governor, The Texas State House, The Texas State Senate, and Governor Rick Perry, which says:
“Please ACCEPT the FREE EXPANSION of MEDICAID under The Affordable Care ACT.”
Will you sign this petition? Click here:
http://signon.org/sign/accept-free-expansion?source=c.em.cp&r_by=7268737
Thanks!
Ajay Jain
[email protected]
Twitter Handle ajain31
Mobile: 214-207-9781