House Dems urge state to refuse federal payment

JEFFERSON CITY, Mo. -- A group of House Democrats on Monday urged state budget writers to refuse to make a $90 million Medicaid payment to the federal government, but Republican Gov. Matt Blunt's administration said doing so could jeopardize prescription drug coverage for seniors.

With the implementation of the Medicare Part D prescription drug program this year, the federal government began covering some low-income citizens who are eligible for both Medicare and Medicaid. In return, the federal government required states to make payments offsetting some of its new costs.

Medicare is a federal program that covers health-care costs for seniors and the disabled, while the Medicaid program for low-income people is funded with a combination of state and federal dollars but run by the state.

Rep. Judy Baker said the state already was covering what the federal government is now picking up at less cost and should be able to opt out of the payment.

"We propose Missouri stand in solidarity with other states and demand that our tax dollars remain at home and serve our citizens," she said.

Baker, D-Columbia, said 19 states have considered refusing to pay. New Hampshire and Texas have already done so.

Blunt's administration has said that refusing to budget for the Medicaid payment likely would not alleviate the need to make the payment.

"We're fully intending to make the payment and comply," said Department of Social Services spokeswoman Deborah Scott.

Blunt spokesman Spence Jackson said the Democrats' proposal "would jeopardize the [Medicare] Part D program and seniors' access to lifesaving legislation."

Although there have been some problems as the new program is implemented, Blunt is convinced that ultimately, "it will be a very good deal for seniors."

Instead of making the federal payment, Democrats said the state should use the money to restore some of last year's cuts to the Medicaid program.

Blunt and the Republican-led Legislature last year lowered the maximum income levels for people to be eligible for Medicaid, resulting in thousands of people being removed from the rolls. The Department of Social Services also stepped up its annual eligibility reviews.

According to data from the Department of Social Services, 96,988 fewer people were on Medicaid in December than in January 2005. Of those reductions, 42,970 were children and 44,643 parents. There were 10,613 fewer disabled people and 1,370 fewer elderly people. But there were 2,608 more pregnant woman covered by the program.

The proposal to hold off on the federal payments came during a news conference held in the Capitol to promote several health care proposals. They include the creation of a state surgeon general, allowing people ages 18 to 24 who have chronic diseases that prevent them from being a full-time student to remain on their parents' health insurance, and requiring medical malpractice insurers to explain year-to-year rate increases greater than 15 percent.