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Governor says no to expanding Medicaid without funding

Missouri Capitol
ABC17 News
Missouri Capitol

JEFFERSON CITY, Mo. (KMIZ)

Voter-approved plans to expand access to Medicaid in Missouri won't move forward.

According to Governor Mike Parson's office, the Missouri Department of Social Services (DSS) submitted a letter Thursday morning to the Centers for Medicare and Medicaid to withdraw its State Plan Amendments for MO HealthNet expansion.

Voters approved in August 2020 a constitutional amendment to expand MO HealthNet access to people between 100 and 138% of the federal poverty level.

MO HealthNet is the state's Medicaid program.

State lawmakers didn't include funding for the proposed expansion when the General Assembly completed Missouri's fiscal year 2022 budget last Friday.

The governor's office said the state's constitution prevents ballot initiatives from appropriating funds without creating a revenue source.

"Although I was never in support of MO HealthNet expansion, I always said that I would uphold the ballot amendment if it passed. The majority of Missouri voters supported it, and we included funds for the expansion in our budget proposal," said Gov. Mike Parson.

"However, without a revenue source or funding authority from the General Assembly, we are unable to proceed with the expansion at this time and must withdraw our State Plan Amendments to ensure Missouri's existing MO HealthNet program remains solvent."

According to the governor's office, DSS estimated expansion of MO HealthNet in FY2022 would cost $1.9 billion to fund.

House Minority Leader Crystal Quade, D-Springfield, accused Parson of breaking his promise to Missouri and "violating his oath to uphold the constitution.

"Whatever reputation he once had for respecting the law is gone forever, and he is just another politician whose word can’t be trusted," Quade said in an emailed statement. "Medicaid expansion will still happen as the constitution requires, but because of the governor’s dishonorable action, it will take a court order to do it.”

The advocacy group Missouri Jobs with Justice is planning a rally in Columbia on Friday afternoon to push for expansion.

Jim Layton, an attorney with Tueth Kenney, said the decision could draw lawsuits after July 1 when someone applies for Medicaid under expanded eligibility and is denied.

Expansion supporters contend there is plenty of money for expansion even if the legislation didn't earmarks funds specifically for that purpose.

"There is more than enough money in the budget to implement expansion," said Democratic state Sen. John Rizzo, R-Kansas City. Rizzon said state Republicans don't respect the outcome of elections.

The state's Medicaid program, MO HealthNet, has one of the nation's strictest eligibility rules. It does not cover most non-disabled adults without children. Parents are able to qualify if their household income is below 21% of the federal poverty line, which in 2021 was less than $5,000 a year for a family of three.

Emily Kalmer with the American Cancer Society Cancer Action Network said cancer patients cannot wait for legal battles to access the life-saving coverage that Medicaid expansion provides. "This year alone, 37,390 will hear the words 'you have cancer' and 12,960 Missourians will pass away from cancer. None of them should suffer a day without the healthcare that over 670,000 Missourians voted into the Missouri Constitution," said Kalmer.

Article Topic Follows: Missouri

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Zachary Farwell

Zachary Farwell is the assignment editor and former senior producer at ABC 17 News.

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