Ohio Medicaid Director: Expansion this year unlikely

Although federal reform legislation enables states to expand Medicaid coverage as early as this year, Ohio Medicaid Director Tracy Plouck said the state’s tight budget makes that unlikely here (Source: “Ohio Medicaid chief says early expansion unlikely,” Associated Press, via Business Week, May 20, 2010).

Plouck said Ohio, like many other states, is concerned about paying its share of the federal-state insurance program, even though the federal government currently pays about 74 percent of Ohio's Medicaid costs, an increased match rate written into the stimulus bill that was signed by President Obama last year. The state’s standard federal match is 63 percent.  That increased aid runs out at the end of 2010, however, and it's unclear if Congress will extend it.

States will be required to extend Medicaid eligibility in 2014, covering people with incomes up to 133 percent of the federal poverty level, or about $29,327 a year for a family of four. Also, childless adults will be covered for the first time. The federal government will pick up 100 percent of the cost for newly eligible enrollees for three years. After that, federal support gradually declines through 2020.

The state had planned on implementing an expansion of Medicaid for children from 200 percent of the federal poverty limit to 300 percent of the FPL as part of the bienium budget that was passed last July. The State's fiscal year 2010-2011 budget called for funding the expansion, and other non-health related measures, with a portion of the State's tobacco settlement dollars; however, questions as to whether the State can use this funding source remain unclear and that expansion also remains on hold.

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