The Wyoming Legislature made one step toward refusing federal funds offered for expanding the state’s Medicaid program.
The Senate Labor Health and Social Services Committee gave the expansion a 4-to-1 “do not pass” recommendation on Wednesday. The senate may still see the bill though, because this committee did not hold the deciding vote on the bill.
The bill comes to Wyoming much the same as it came to most states across the country preparing for the impending 2014 mandate that all residents have health insurance, whether or not it is provided with employment.
After the U.S. Supreme Court ruled the individual mandate lawful in June 2012, many states have been pushing their plans through the state legislatures.
The expansion is seen as a way to help fill the gaps as Wyoming residents, like many across the country, go health insurance shopping before the individual mandate goes into effect in 2014.The expansion is meant to accommodate the currently uninsured who may be unable to afford insurance through a healthcare exchange.
The Medicaid expansion would add an estimated 17,600 new adults to the program, many of whom are low-income but do not currently qualify.
As part of the Affordable Care Act, the federal government has agreed to pay 100 percent of the bills of all newly qualifying members involved in the Medicaid expansion for the first three years and 90 percent of the bills thereafter.
State lawmakers, echoing the sentiments of Gov. Matt Mead, are skeptical that the federal government will be able to cover the promised 90 percent after the first three years, given the current ongoing budget problems. Some of the bill’s opponents are worried about the political ramifications of offering three years of the expansion and then discontinuing it due to federal funding problems.
Laramie City Council member Paul Weaver, speaking from the perspective of a concerned resident, said he thought the expansion was the better route.
“I think the Affordable Care Act is an imperfect solution to a complex problem, but there are lots of people out there needing insurance,” Weaver said. “Lots of groups, including several health care organizations that operate within the state, favor the expansion.”
Weaver said the argument that the federal government may not be able to pay what it is promising is mostly political. He said there is a consensus that it would end up saving $50 million and that if we do not expand Medicaid it might end up costing the state $80 million.
“I am not certain why this one particular expansion is being scrutinized. We have signed on for lots of other things. I think this is part of the politics,” Weaver said. “I think they don’t like it because it is coming from a Democratic president.”
