Michigan's GOP governor backs Medicaid expansion

BY DAVID EGGERT Associated Press
Thursday, February 07, 2013
2/07/13 at 6:27 AM



Read the Tulsa World continuing coverage of the health care law.Original Print Headline: Michigan chief gets on board with 'Obamacare'

LANSING, Mich. - Republican Gov. Rick Snyder on Wednesday backed the extension of Medicaid coverage to 470,000 residents under the Obama administration's health care overhaul, saying it is the right thing to do despite resistance from his own party that controls the Legislature.

He is the sixth GOP governor to propose expanding the taxpayer-funded health insurance program, joining the leaders of Ohio, Arizona, New Mexico, Nevada and North Dakota. Snyder has criticized the federal health care law in the past but to a lesser extent than other Republican governors.

Several other GOP governors have said they will not go forward with Medicaid expansion, including Mary Fallin of Oklahoma, Rick Perry in Texas, Bobby Jindal in Louisiana and Nikki Haley in South Carolina.

The U.S. Supreme Court allowed Medicaid expansion last year in its ruling upholding the constitutionality of the federal health care law. Under the law, states can increase the eligibility under their Medicaid programs to people whose incomes equal 138 percent of the federal poverty level.

Extending Medicaid to nearly half of Michigan's uninsured is a "win for all," Snyder told a crowd of happy doctors, nurses, insurance officials and other supporters gathered at a Lansing hospital not far from the Capitol.

Asked about Republicans' opposition to President Barack Obama's signature domestic achievement, he said he looked at the numbers and concluded that boosting the number of Medicaid participants would save the state money and make people better off.

"This improves lives at an individual level, where these people can hopefully have a great opportunity to have employment," Snyder said. "If you have health issues, it can make it difficult to have a job or make it difficult to hold a job you could otherwise hold. It's a tremendous gain at the individual and family level. If you look at it from a societal level or governmental level, it is an opportunity to save costs because ... we're paying for this in some fashion through hidden charges or other pieces of the equation."

Snyder said the chance to cover nearly half of the state's uninsured is "huge," adding that he is comfortable that the health care system can handle the extra case- load.

The federal health care law gives states the option to accept the expansion, refuse it or postpone a decision. But there are benefits for states that choose to expand Medicaid now: The U.S. government will pick up the entire cost in the first three years and 90 percent over the long haul.

Snyder is expected to run into resistance from Republican lawmakers opposed to the health law.

Rep. Joe Haveman, a Republican who is chairman of the House Appropriations Committee, said his proposal deserves a closer look, but Republicans have questions.

"The federal government has a long history of promising support for long-term government programs and then coming up well short when the time comes to honor their commitment," Haveman said in a written statement.

"We are going to do what's best for the people we serve and do our homework on this proposal before committing one way or the other. Michigan residents deserve that."

Snyder said Medicaid expansion would save the state $200 million a year initially because more people who now receive mental health services and medical care from state-funded programs would instead be covered with federal money.

He called for setting aside $100 million a year of those savings so Michigan can pay 10 percent of the cost for new enrollees down the line. He said the expansion would effectively cost Michigan nothing until 2035.
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Michigan Gov. Rick Snyder: He said Medicaid expansion would save the state $200 million a year initially because more people who now receive mental health services and medical care from state-funded programs would instead be covered with federal money



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