Federal health care law will cost state, secretary says
Madison -
The state health secretary will tell Congress on Thursday that the
state will pay more for its health care programs for the needy under the
looming federal health care law but does not have full financial
projections on that claim.
Dennis
Smith, the point man on health care for Gov. Scott Walker's
administration, said Wednesday that he will argue that the federal law
commonly called Obamacare will cost Wisconsin taxpayers more than it
will save. That's because, according to Smith, it won't provide enough
additional reimbursement to the state to cover the full number of people
who will sign up for Medicaid health programs for the poor such as
BadgerCare Plus.
"The math is just not going to work out," Smith said in a conference call with reporters
But
Smith said that the state Department of Health Services hasn't yet
completed its financial projections on the impact of the federal law on
the state budget. So far, the agency hasn't formally responded to an
open records request by the Journal Sentinel for those projections.
Smith
is scheduled to testify Thursday morning before a health subcommittee
of the Energy and Commerce Committee in the Republican-controlled U.S.
House of Representatives.
On
the call Wednesday, he said that there are an estimated 113,000 parents
and children who currently qualify for Medicaid but who are not
enrolled and who will sign up for it because of the federal health care
law's requirement that people obtain health coverage. The federal
government will pay for about 60% of that cost and the state government
will pay the rest.
That
cost will be balanced against the 21,700 childless adults for which the
federal government will initially pick up the full cost of coverage -
an expense that is currently shared between the state and federal
government.
Smith said that was a "straightforward" calculation of cost but also acknowledged that the state has yet to actually do it.
"We're still building our models," he told reporters.
State
Rep. Jon Richards (D-Milwaukee), a supporter of the federal law, said
Wisconsin should take advantage of the additional federal money under
the legislation to cover more of its citizens.
"The
smart thing for Wisconsin to do is get as much federal money as
possible to pay for as much expansion as possible," Richards said,
speaking Wednesday before Smith's comments became public.
Smith
did make clear, however, that Walker would be deciding whether to
expand Medicaid based on the overall impact of the federal health care
law on patients, the state, and businesses such as hospitals that could
see increased revenues from an expansion of coverage.
"The
governor has not made any decision about the Medicaid expansion. I want
to emphasize that in big glowing neon lights," Smith said.
In
criticizing the federal health-care law, Smith also pointed to the
state's own experience in charging premiums to Medicaid recipients with
incomes at or above 133% of the federal poverty level, noting that a
significant portion don't pay their premiums.
Smith
said that suggested that significant numbers of people might not choose
to buy private health insurance subsidized by the federal government
under the law.
One
key difference between the state premium payments under Medicaid and
the premiums envisaged under the federal law will be that the federal
government will require individuals to obtain health coverage and will
penalize those who do not.
No comments:
Post a Comment