(SitNews) - Citing the failure of Obamacare, the enormous current and future Medicaid costs to Alaska, and greater uncertainty about the federal government’s ability to pay its share, Governor Parnell announced Friday he will not seek to expand Medicaid health coverage for the poor in Alaska.

Enacted in 1965, Medicaid is a joint federal & state program that provides health care insurance to low-income persons whose income and resources are insufficient to pay for health care.

Along with his announcement, the $80,000 Alaska Medicaid Expansion Cost Study, the subject of numerous public record requests, was also released. The study was provided to the state in April; however, all requests for public release of the study were refused by the administration, asserting the 60-page report was part of the administration's decision-making process and secret until a decision was made.

The Alaska State Chamber of Commerce, Alaska Hospital and Nursing Home Association, Alaska Federation of Natives, Alaska Native Tribal Health Consortium, Anchorage NAACP, Alaska Bush Caucus, Senator Begich, Byron Mallott, and some 1,400 Alaska petitioners had urged Parnell to expand Medicaid.

Governor Parnell said when announcing his decision, “Obamacare has failed to launch, is failing to deliver on its promises, and remains in disarray. Expanding one of its largest, most costly parts will undoubtedly negatively impact Alaskans.” The Governor said, “More people are losing their insurance policies and paying higher premiums with higher out-of-pocket costs. Some Obamacare deadlines have been extended, while others have not, unbundling Obamacare’s package of interdependent trade-offs. As a result, health care is becoming less affordable and less accessible, as we witness what appears to be the destruction of the private insurance market.”

Medicaid is already one of Alaska’s biggest and most costly government programs noted Governor Parnell. At a cost of $1.5 billion per year, the program covers approximately 140,000 Alaskans, which averages to roughly $11,000 per Alaskan covered. By 2020, without Obamacare’s Medicaid expansion, Alaska’s current Medicaid program costs are expected to grow from $1.5 billion to $2.5 billion. With the Obamacare Medicaid expansion, Alaska’s Medicaid costs will skyrocket said Parnell.

“Effectively, the State’s operating budget would then revolve around the expanded Medicaid program,” Governor Parnell said. “This decision has to be about setting policy that helps the poor, without saddling future generations with the debt and risk. Attaching a costly Medicaid expansion to a flagging national health care program is like buying a high-priced ticket on a sinking ship. If Obamacare rights itself in the years ahead, and begins to deliver on its promises of more affordable and accessible health care for all, the State of Alaska can reevaluate whether to expand Medicaid in this way.”

Governor Parnell announced the creation of an Alaska Medicaid Reform Advisory Group to address Medicaid’s structural issues and propose meaningful reforms to the State’s Medicaid program. The group will address three key reform mandates: Stability and predictability in budgeting; Increasing the efficiency of navigating the system by providers; and Providing whole care for the patient by uniting physical and behavioral health treatment.

The Governor said the State remains committed to funding the safety net of health care services already available to people below 138 percent of the federal poverty level (FPL). The State will also work to better communicate with income-eligible Alaskans about health care services available to them now at no cost. Governor Parnell has been meeting with health care providers from across Alaska, discussing the adequacy of Alaskans’ safety net and the level of uncompensated care providers give to those in need.

The governor has also directed the commissioner of Health and Social Services to develop a report defining the current status of Alaska’s safety net for those non-Medicaid-eligible Alaskans up to 100 percent of the FPL. Additionally, the commission is to report on the linkage between uncompensated care by providers, and higher health costs and premiums for Alaskans.

Alaska Department of Health & Social Services Commissioner Bill Streur said in a prepared statement, "It is imperative that we know more about the people who make up this category — who they are, their health care needs, and whether the current services available to them are being utilized or if different services need to be created. The state remains committed to funding the safety net of health care services and to improving the delivery of those services in the most efficient and cost-effective way."

Streur said the Alaska Department of Health and Social Services is in the process of developing an improved communications plan in the Division of Public Assistance directly targeted at those Alaskans who are the most vulnerable and who are in need of accessing the programs and services offered by the state and federal governments. He said in the months ahead, Health & Social Services will execute the communications plan, and will strive to better identify and inform income-eligible Alaskans about the services available to them at little or no cost.

U.S. Senator Mark Begich (D-AK) said in a prepared statement, “Governor Parnell’s announcement [Friday] means he is denying health insurance to as many as 40,000 Alaskans, which at the start is free to the state and eventually would cost no more than 10 cents on the dollar.  Aside from the obvious health benefits to Alaska families, the state Chamber of Commerce urged the governor to expand the program because it is also the right thing to do for Alaska businesses and the economy.  Without the expansion, people who cannot afford insurance will continue to get their health care needs met in hospital emergency rooms across the state - the most expensive way to get health care.  Those costs will continue to be passed on to all other Alaskans.”

 “Governor Parnell just told 40,000 Alaskans to go fend for themselves when it comes to finding health coverage,” said Mike Wenstrup, Chairman of the Alaska Democratic Party.  “This decision ignores the very clear economic benefits of expanding Medicaid in favor of playing more politics with Alaskans’ lives.”

"Governor Parnell made a calculated political decision to reject calls for Medicaid expansion – hurting some 41,000 Alaskans who will remain without affordable, quality health care,” said Democratic candidate for governor Byron Mallott. “Medicaid expansion should never have become a partisan issue.   Despite the Governor’s claims, this was a clear and immediate way to help our economy grow, create new jobs, and lower heath care costs for all of us.   That’s why I joined with many state leaders and business organizations in urging him to change his stance on Medicaid expansion.  It’s disappointing that Parnell continues to stand in the way of what is best for our state and Alaskans."

According to an independent study from the Alaska Native Tribal Health Consortium, Medicaid expansion would have provided health coverage to 41,500 Alaskans, created 4,000 jobs, and generated over $2.49 billion in new economic growth for Alaska.

"It is extremely unfortunate that Governor Parnell has decided not to expand Medicaid for Alaska.  This decision is detrimental to our citizens who are unable to receive affordable health care.  A healthier community is in direct relation to a healthier economy,” said Wanda V. Laws, President of the Anchorage NAACP.

“Passage of the Medicaid expansion would provide a viable option to approximately 41,500 Alaskans to Health Care Insurance, rather than protect the insurance companies’ bad policies and practices with no protections for consumers,” said Kevin McGee, a veteran who is 1st Vice President of the Anchorage NAACP.

Alaska House Representatives Mark Neuman (R) and Pete Higgins (R), agree with the governor that expanding Medicaid would place a potentially undue burden on future Alaskans should the federal government make cuts to its portion in the future.

Rep. Neuman, R-Su-Valley, chairs the House Finance Subcommittee on Health and Social Services which oversees the department’s budget requests, and Rep. Higgins, R-Fairbanks, chairs the House Committee on Health and Social Services, which carries oversight of legislation and programs.

“Members of the House Finance Committee have spent this summer looking at the high cost of health care for Alaskans and have learned just how complex the issue is,” Neuman said. “I believe the Governor’s caution to not expand Medicaid is sound at this point. Passing the burden of health care on to our children is not an option. I applaud the Governor’s decision and will continue to work with the Administration on the right solutions.”

“As chairman of the House Health and Social Services committee I have heard numerous hearings and presentations about Medicaid cost in Alaska. Working closely with the House Finance Heath and Social Services Subcommittee I found those costs to be very concerning,” Higgins said. “I support the Governor’s decision not to expand Medicaid at this time. We owe it to our children not to put the burden of this on them and our future generations. I look forward to working with the various entities and the Administration as they put together their Advisory Group.”

“Considering the failure of the Affordable Care Act, the Governor is wise to refuse Medicaid expansion at this time.  It’s a matter of dollars and cents – America can’t afford it.  They don’t have the money to pay for this and they’ll take it from future generations.  I applaud the Governor’s decision,” said Senator John Coghill (R), Majority Leader of the Alaska Senate.

The 60-page Lewin Group Study concluded that failure to expand Medicaid would leave about 19,900 individuals uninsured that would otherwise have coverage under Medicaid expansion. The report said expanding Medicaid would cost the state between $198 million and $306 million from 2014 to 2020, while additional federal funding would total between $2.1 billion and $3.7 billion over that time.

On the Web:

Lewin Final Report - Alaska Medicaid Expansion Cost Study (60 pages PDF)
Released November 15, 2013 (Last updated April 2013)

Sources of News: 

Office of the Governor
www.gov.state.ak.us

Office of U.S. Senator Mark Begich
www.begich.senate.gov

Anchorage NAACP

Alaska Department of Health & Social Services
dhss.state.ak.us

Rep. Mark Neuman, R-Su-Valley
legis.state.ak.us

Rep. Pete Higgins, R-Fairbanks
legis.state.ak.us

Candidate for governor Byron Mallott
byronmallott.com

Senator John Coghill (R)
legis.state.ak.us

Alaska Democrats
www.alaskademocrats.org>

 

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