Governor Kasich Urges Obama Administration to Cut Medicaid Enrollment
Gov.-elect John Kasich and 32 other Republican governors and governors-elect are urging the Obama administration to let states cut enrollment in the tax-funded Medicaid program without losing federal aid. In a letter sent this week to the president and congressional leaders, the GOP leaders urged them to abolish a stipulation in the health-care law that cuts federal aid to states that drop people from Medicaid, the state-federal health-care program for the poor. Medicaid enrollment in Ohio and across the nation has soared since the recession began. More than 2 million Ohioans get health coverage through the program, with costs now topping $15 billion a year.
State officials are projecting an $8 billion shortfall in Ohio's next two-year budget, which takes effect July 1. Under Ohio guidelines, children and pregnant women in households earning up to 200 percent of the federal poverty level are eligible for coverage. That's $21,660 a year for an individual and $44,100 annually for a family of four. The federal government provides matching funds covering about 60 percent of Medicaid costs, and states pick up the rest. So, for every dollar Ohio cuts in Medicaid spending, it will lose an additional $2 in federal aid. State officials say Medicaid now makes up more than 3 percent of Ohio's economy.
State governments are worried about the federal "maintenance of effort" regulations. Under the requirements, states that reduce eligibility or make it more difficult to enroll will lose federal aid. Some states have mentioned withdrawing from Medicaid entirely and establishing much smaller state programs because of budget constraints.