Plans to expand Medicaid in Missouri were abandoned Thursday after Gov. Mike Parson announced his administration had withdrawn its request to expand the health care program in the state. This comes after funding for the voter-approved measure was not passed by the Republican-led legislature.
The expansion request had originally been submitted to the Centers for Medicare and Medicaid Services in August 2020 after a constitutional amendment was passed by voters.
However, in a turn of events, the state’s $35 billion budget was approved last week and did not include the funding Parson requested to pay for the Medicaid expansion.
“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,” said Parson.
Multiple Democratic lawmakers have spoken out about the decision, including House Minority Leader Crystal Quade and Senate Minority Leader John Rizzo.
In a statement, Rizzo said that Parson was “caving to the new Authoritarian Republican Regime that doesn’t respect the outcome of elections.”
The constitutional amendment required the governor’s administration to develop and submit an official plan to federal authorities by March 1 for Medicaid to be expanded. Parson’s administration did this.
While the majority of the expansion would be funded by the federal government, Republican lawmakers in Missouri argued that the long-term funding required by the state would be too costly.
During the voting period, Parson opposed the expansion, but he agreed to carry through with the wishes of voters. After the ballot measure passed, Parson included $1.9 billion in federal and state funding to the annual budget that he sent to the legislature.
The expanded program was supposed to provide individuals between the ages of 19 and 65 eligibility and coverage for Medicaid benefits if they have an income of up to 138 percent of the federal poverty level. For individuals, that would be $17,774 or less per year, and for a family of four, that would equate to $37,570 or less annually.
Coverage was scheduled to begin July 1, 2021.
Because this was a voter-approved measure, experts anticipate the decision will lead to a legal action from supporters.
Parson noted, however, that a state appeals court in June 2020 ruled that the legislature was not directed or restricted by ballot measure when deciding how to fund Medicaid.