June 30, 2012
Gov. Bobby Jindal said Friday that Louisiana will not take any steps toward implementing President Barack Obama's Patient Protection and Affordable Care Act, even though the U.S. Supreme Court says it is constitutional and Congress has ordered states to implement it.
According to ABC News, Jindal announced Friday on a Republican National Committee conference call that he would take no steps to allow Louisiana residents to participate.
"Come this November, we are going to elect a new President and a new Congress who will repeal and replace Obamacare," Jindal said in a statement released to Louisiana reporters. "That's why we have refused to implement the Obamacare health exchange or the Medicaid expansion."
States are required under the law to establish a health insurance exchange program by January 2014. Federal grants are available to help states establish the programs, which would serve as clearinghouses for residents to obtain insurance.
The law also calls for expansion of Medicaid programs that would provide coverage to thousands more Louisiana residents.
Jindal last year said the state would not establish an insurance exchange and if Louisiana residents want to do it, they could use a national exchange.
"This whole ruling, I think is ridiculous. It's a huge expansion of federal power," Jindal said on the conference call.
Repeal of the act is not guaranteed, even if Romney is elected. Republicans and Democratic opponents of the program would have to control both the House and Senate after this fall's elections.
Jindal is a not the only Republican governor refusing to move forward.
Republicans in at least four other states want to abandon an expansion of Medicaid in the wake of the Supreme Court decision removing the threat of federal penalties.
The high court upheld most of Obama's law, but the justices said the federal government could not take away states' existing federal Medicaid dollars if they refused to widen eligibility to include adults who are only slightly above the poverty line. Some Republican governors and lawmakers quickly declared that they would not carry out the expansion.
The states considering whether to withdraw from the expansion include presidential battlegrounds Florida, Ohio, Pennsylvania and Colorado.
"One thing is clear: State legislatures will play a big role in the future of Obamacare," said Republican state Rep. Todd Richardson of Missouri.
For elected officials, the high court decision presented a stark choice: agree to accept an ambitious expansion of Medicaid or leave behind a vast pile of federal money that could provide health care to millions of poor constituents.
The law signed by Obama in 2010 was projected to provide coverage to more than 30 million Americans, reducing by more than half the number of uninsured people. Of those, about 17 million were supposed to be added to Medicaid, the joint federal and state health care program for the poor. The rest were to be covered by a strengthened and subsidized private insurance market.
The federal government agreed to pay the full tab for the Medicaid expansion when it begins in 2014. But after three years, states must pay a gradually increasing share that tops out at 10 percent of the cost. That may not sound like much, but it translates to a commitment of billions of dollars at a time when many local officials are still anxious about the slow economic recovery.
In Texas alone, where one quarter of the population is uninsured, the Medicaid expansion is projected to provide coverage to 2 million people in the first two years alone. Over a decade, the Texas Health and Human Services Commission estimates the expansion would cost the state an estimated $27 billion. Lawmakers will weigh their options when they return to work in 2013.
But other states aren't waiting to announce their intentions.
Mississippi, which is one of the poorest states in the nation and has more than 640,000 people on Medicaid, could cover an additional 400,000 people if it chose to expand Medicaid. But doing so would cost about $1.7 billion over 10 years and force deep cuts to education and transportation, state officials said.
"Mississippi taxpayers simply cannot afford that cost, so our state is not inclined to drastically expand Medicaid," Republican Lt. Gov. Tate Reeves said.
Republican Nebraska Gov. Dave Heineman promised to block any effort to expand Medicaid, which he said would require tax increases or education cuts. And Indiana Senate President Pro Tem David Long, also a Republican, asserted that his state "will certainly" opt out of the Medicaid expansion.
The expansion was also quickly nixed by GOP legislative leaders in Missouri, where 255,000 of the state's roughly 835,000 uninsured residents stood to be added to the program. In 2005, Missouri slashed its Medicaid eligibility for parents to the lowest levels allowed by the federal government in order to help balance the budget. The expansion in Obama's health care law would restore coverage to those people and add many more. The cost: $2 billion annually, of which Missouri would pay about $100 million beginning in 2017, with its share rising above $150 million by 2019.
"The federal government always does this -- they put something out there that looks good on the front end, but on the back end the states have to figure out how to pay for this," said Missouri House Majority Leader Tim Jones, a Republican. "In this current economic time, we're not going to consider going down that path."
In states that reject the Medicaid expansion, some lower-income residents who work could find themselves in a coverage gap between the extremely poor and the middle class. The health care law offers tax breaks to offset the cost of private insurance purchased through new online marketplaces for those whose incomes are above the poverty level. But there are no breaks for many others who earn below the poverty level but still aren't considered poor enough to receive Medicaid. The law assumed they would be covered by an expanded Medicaid program.
Bunnie Gronborg, 64, of Festus, Mo., said she has two sons in their 30s who are single fathers who lost construction jobs and now lack health insurance. She had hoped they could be covered by the Medicaid expansion, and she doesn't buy the explanation that the state cannot afford it.
"There's absolutely no reason" to reject the expansion, "except being vindictive and playing political games with people's actual health care," Gronborg said.
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