OHA Advocacy Network

Advocacy Report • Thursday, March 15, 2007

Strickland Announces Expanded Medicaid Eligibility in State of the State

Inpatient Medicaid Increase Slated for All Hospitals

In his first State of the State Address, Governor Strickland yesterday outlined his priorities for the State of Ohio, including a number of initiatives to provide health care coverage to uninsured Ohioans. In his first budget proposal, the summary of which was released today, Strickland proposes inpatient Medicaid increases for all Ohio hospitals. More specific language of the governor’s budget proposal will be available next week. OHA will provide members with additional insight to the governor’s proposals at that time.

Under the governor’s proposed budget, the state would expand Medicaid eligibility for low income working parents earning up to 100 percent of the federal poverty level. Last legislative session, lawmakers reduced Medicaid eligibility criteria for low-income parents to 90 percent of poverty, resulting in 25,000 working Ohioans losing their health coverage. Combined with Ohio’s 1.3 million uninsured, the additional 25,000 uninsured adults drove even more individuals to seek care in hospital emergency rooms— where hospitals are required to provide medical necessary care, without compensation, to the tune of $447 million in 2004. OHA has been advocating for restoring Medicaid coverage to those 25,000 low-income adults in collaboration with the Ohio Family Coverage Coalition.

Gov. Strickland has also proposed:

· the expansion of coverage of pregnant women earning up to 200 percent of the federal poverty level. Currently eligibility is at 150 percent;

· a State Children’s Health Insurance Program for Ohio children whose parents earn up to 300 percent of the federal poverty line, up from the current level of 200 percent of poverty. Those who exceed that income limit but still lack insurance will have the opportunity to buy Medicaid coverage for their children. The proposal would cover at least 30,000 children who are currently uninsured;

· that Ohioans will severe disabilities who want to work but who are afraid of losing their Medicaid coverage if they become employed to maintain coverage by buying into Medicaid.

Medicaid Update for Hospitals and Community Providers

The governor’s budget summary also includes an increase for hospital inpatient Medicaid reimbursement. The Ohio Department of Job and Family Services (ODJFS) has confirmed to OHA that the budget will includes an inpatient Medicaid update for all hospitals, calling for a 3.3% adjustment in 2008 and a 2.9% increase in 2009. The update would take effect Jan. 1, 2008 and could bring as much as $123.5 million over what hospitals would have received without an increase during those 2 years. Community providers, including physicians, are slated to receive a 3% increase in reimbursement - the first update in over ten years.

These and other funding initiatives are possible through policy changes, revenue adjustments, and improved cash management strategies, working within recently enacted tax changes. These changes include an estimated increase in state revenues of approximately $197 million due to a temporary oil tax exemption. There are efforts underway to extend the exemption, which, if successful, would severely impede the administration’s ability to fund all of its human service proposals.

In other budget news, OHA learned last week the administration was exploring the possibility of diverting Hospital Care Assurance (HCAP) dollars for new health care programs. Yesterday, the Office of Budget and Management (OBM) confirmed that the administration will not include plans to divert HCAP funds in the state budget.

Also outlined in yesterday’s State of the State Address, Gov. Strickland looks to expand the PASSPORT program to provide essential in-home services to more vulnerable older Ohioans who need a little help with their medical needs, but who do not require the constant care of a nursing home. Another program that will expand under the governor’s proposed budget will be the Help Me Grow program which provides families with children from newborn to 3 years old vital information and resources on health, safety, and development.

The full State of the State Address can be found at http://www.ohanet.org/advocacy/state/stateofstate.htm. (Bridget Gargan, bridgetg@ohanet.org)

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Direct questions on OHA’s advocacy agenda to:

Bridget Gargan, Vice President, State Policy & Advocacy (bridgetg@ohanet.org)

Jeff Klingler, Director, State Policy & Advocacy (jeffk@ohanet.org)

Jean Scholz, RN, Director, Health Policy (jeans@ohanet.org)

Rick Sites, General Counsel (ricks@ohanet.org)

Stacey Conrad, Specialist, State Policy & Advocacy (staceyc@ohanet.org)

Jonathan Archey, Manager, Federal Relations (jonathana@ohanet.org)

Laura Landis, Executive Assistant, State Policy & Advocacy (laural@ohanet.org)