Missouri Foundation for Health Archives

Missouri Senator slams state’s no-bid contract paying firm $829,000 so far

September 2, 2020 By Alisa Nelson

Missouri has paid a consulting firm more than $829,000 so far in federal funding for pandemic response coordination, despite Gov. Mike Parson saying a foundation was paying the tab. The St. Louis Post-Dispatch reports payroll records show the McChrystal Group has received the federal CARES Act funding from the state, instead of Parson saying earlier that the Missouri Foundation for Health would cover up to $600,000 in costs for the firm’s work.

State Sen. Lauren Arthur D-Kansas City (image courtesy of Arthur for Missouri)

During Senate floor debate Wednesday, Sen. Lauren Arthur, D-Kansas City, tells Sen. Scott Sifton, D-Affton, that she has a problem with the price tag and the contract bypassing the normal bidding process.

“Why are we spending a million dollars on this for one – the governor to ignore that kind of plan and for two – while we’re cutting things like school funding, when people don’t have enough PPE, when we don’t have enough testing available,” says Arthur. “I think it’s probably a better use of the state’s money – of taxpayer dollars, of Missourians’ money – to go towards tests so we know whether or not people are contagious, as opposed to spending money on quote structure and management to allow decision makers to determine policies.”

Missouri has spent over $1.5 billion of the more than $2 billion it has received as part of federal COVID-19 funding. Most of the money has gone to Missouri counties to help local governments fight the virus. The state has spent its portion on things like personal protective equipment, putting up emergency workers in a hotel, and a temporary hospital site.

Parson spokeswoman Kelli Jones says under the contract, the firm will be eligible to continue being paid nearly $250,000 a month for its work. She says the McChrystal Group has been a tremendously helpful resource in pulling teams together within state government to drive quick and effective COVID-19 action.

The Virginia-based consulting company was founded by retired four-star Army Gen. Stanley McChrystal.

Missouri’s state treasurer is warning against Medicaid expansion; both sides cite different numbers

July 26, 2020 By Brian Hauswirth

Missouri’s state treasurer and the House Budget Committee chairman will travel across the state on Monday, urging Missourians to vote against Medicaid expansion on the August ballot.

Missouri State Treasurer Scott Fitzpatrick speaks at a CARES Act funding working group on May 21, 2020 in Jefferson City (file photo courtesy of Tim Bommel at House Communications)

Medicaid, which is formally known as MO HealthNet, is a federal and state program that assists with medical costs for residents with limited incomes.

House Budget Committee Chairman Cody Smith, R-Carthage, tells Missourinet that Medicaid’s current budget is almost $12 billion for fiscal year 2021. The state’s current operating budget is about $35.2 billion.

Smith and State Treasurer Scott Fitzpatrick (R) will visit Joplin, Springfield, Kansas City, Creve Coeur, Cape Girardeau and Jefferson City on Monday. They’ll brief Capitol reporters immediately following the governor’s 3 pm press conference at the Statehouse.

Missourians will cast ballots on Amendment Two, the Medicaid expansion proposal, on August 4. If approved by voters, Medicaid would be expanded for residents between the ages of 19 and 64 with an income level at or below 133 percent of the federal poverty level, as set forth in the Affordable Care Act.

Medicaid expansion supporters say the measure would provide healthcare to Missourians who earn less than $18,000 annually.

Chairman Smith says the August Medicaid expansion ballot measure is projected to cost $200 million in state general revenue, and $1.8 billion in federal funding each year. He also says it will raise Missouri’s Medicaid rolls from 950,000 to more than 1.2 million participants.

Smith also says COVID-19 has had a major impact on Missouri’s economy.

“More than $1 billion has been cut from the state’s general revenue budget in recent months,” Smith says, in a statement. “Just this month, services requiring state support have been drastically reduced, including elementary school funding, college scholarships, and support services for those in need. Amendment Two will be a knockout blow to the state budget as more services will be cut or eliminated to pay for the healthcare of able-bodied adults.”

Supporters of Medicaid expansion disagree, saying the measure will create thousands of new jobs, many of them in rural communities.

The Missouri Chamber of Commerce and Industry and many unions have endorsed Amendment Two. The Chamber has quoted a study from the Missouri Foundation for Health, which says Medicaid expansion will create more than 16,000 new jobs annually during its first five years, while increasing personal income by $1.1 billion annually.

The Foundation for Health says most of the new positions would be outside of St. Louis and Kansas City, and that 90 percent of those jobs will pay more than $15 an hour.

Medicaid expansion supporters also say that Amendment Two will help keep rural hospitals open.

The Missouri Hospital Association (MHA) says ten rural Missouri hospitals have closed since 2014. Five of the ten ten closings happened in the southeast Missouri district of U.S. Rep. Jason Smith, R-Salem.

The Missouri Farm Bureau, the state’s largest general farm organization, is opposed to Amendment Two. Farm Bureau President Blake Hurst says it could cripple the state budget by imposing massive new healthcare costs on Missouri taxpayers.

37 states have expanded Medicaid.

Missouri lawmakers to hear Tuesday testimony on two issues: Medicaid expansion and tax credits

June 30, 2020 By Brian Hauswirth

Missouri lawmakers will hear testimony on Tuesday in Jefferson City about potential impacts on the state budget, if voters approve Medicaid expansion in August.

House Budget Committee Chairman Cody Smith, R-Carthage, speaks on the Missouri House floor on May 6, 2020 in Jefferson City (file photo courtesy of Tim Bommel at House Communications)

Medicaid, which is officially called MO HealthNet in Missouri, is a federal and state program that assists with medical costs for residents with limited incomes.

Missouri voters will cast ballots on Amendment Two in August, and the House Budget Committee will hear testimony Tuesday afternoon from 1-5 about potential budget implications.

Missouri’s current Medicaid budget is about $10 billion, about one-third of the state’s approximately $30 billion budget.

Thirty-six states have approved Medicaid expansion.

The Missouri Chamber of Commerce and Industry has endorsed Amendment Two, describing it as a “pro-jobs measure that will help fuel economic growth throughout our state.” The Chamber cites a report from the Missouri Foundation for Health, which says Medicaid expansion will create more than 16,000 new jobs annually during its first five years, creating more state revenue.

The Missouri Hospital Association also backs Medicaid expansion, saying 10 rural Missouri hospitals have closed since 2014.

Top Missouri GOP leaders oppose Medicaid expansion, warning it will impact the budget, causing cuts in other programs.

House Speaker Elijah Haahr, R-Springfield, says it would take dollars out of the classroom. He notes it would require a ten percent match, for the 90 percent draw down.

House Budget Committee Chairman Cody Smith, R-Carthage, agrees, warning it will blow a hole in the state operating budget. Governor Mike Parson (R) has expressed similar concerns.

The Budget Committee will also meet Tuesday from 10 a.m. to noon for their annual tax credit review hearing. Tax credits are essentially money that can be offset against a tax liability.

Budget Chairman Smith tells Missourinet that the state issued $551 million in tax credits in fiscal year 2019. Supporters of tax credits in the Legislature say they’re critical to landing key projects, especially in rural Missouri.

But opponents say they decrease funding for other parts of the state budget.

Missouri Chamber backs Medicaid expansion, which remains key issue in gubernatorial race

June 12, 2020 By Brian Hauswirth

Missouri’s most influential business group is endorsing a Medicaid expansion issue that will appear on your August ballot. Medicaid, which is formally known as MO HealthNet, is a federal and state program that assists with medical costs for residents who have limited incomes.

Governor Mike Parson (right) briefs Missouri Capitol reporters in Jefferson City on June 11, 2020 (photo courtesy of the governor’s Flickr page)

Missouri’s current Medicaid budget is about $10 billion, accounting for about one-third of the state’s $30 billion operating budget.

The Missouri Chamber of Commerce and Industry has endorsed Amendment Two, which will be on the August 4 statewide ballot. The Chamber describes the Medicaid expansion proposal as a “pro-jobs measure that will help fuel economic growth throughout our state.”

The Chamber quotes a study from the Missouri Foundation for Health, which says Medicaid expansion will create more than 16,000 new jobs annually during its first five years, while increasing personal income by $1.1 billion annually. The Chamber says most of the new positions would be outside St. Louis and Kansas City, and that 90 percent of those jobs will pay more than $15 an hour.

The Missouri Hospital Association says ten rural Missouri hospitals have closed since 2014.

“Let’s not miss this chance to bolster our economy during this recovery, while expanding access to healthcare for our fellow Missourians,” Missouri Chamber President Dan Mehan says, in a written statement.

36 states have approved Medicaid expansion.

While the Medicaid expansion issue will be decided by voters in August, it has also emerged as a key issue in Missouri’s November gubernatorial race. It’s also a key issue for lawmakers in both parties.

Missourinet asked both Governor Mike Parson (R) and State Auditor Nicole Galloway (D), the presumptive Democratic gubernatorial nominee, about Medicaid expansion when they filed in February in Jefferson City.

“When (Auditor) Galloway was there and (Democratic Governor Jay) Nixon was there, we had over one million people on the state Medicaid roll out of six million. So when you think of that practically, one out of every six people on Medicaid,” Parson told Missourinet in February, at the Kirkpatrick Building.

Parson also said that day that no one verified Missouri’s Medicaid rolls, for more than a decade. He also emphasized that children who qualify for Medicaid should receive those services, and that his administration wants them to receive the services.

Auditor Galloway supports Medicaid expansion, noting the ten rural Missouri hospitals that have closed since 2014. The Columbia Democrat told Missourinet in February that it’s crucial.

“We have a governor that has kicked 100,000 children off of their health insurance, and he has no vision and no solution on how he’s going to fix that,” Galloway said that day.

Medicaid expansion has been discussed in the General Assembly for years, with most Republicans opposed to it and Democrats supporting.

House Speaker Elijah Haahr, R-Springfield, opposes Medicaid expansion, saying it would take dollars out of the classroom. Speaker Haahr notes it requires a ten percent match, for the 90 percent draw down.

House Budget Committee Chairman Cody Smith, R-Carthage, agrees, telling Missourinet Friday evening that he opposes Medicaid expansion because he worries it will blow a hole in the state budget. Other GOP members on the House Budget Committee have the same concern.

Democrats in the Legislature disagree. State Sen. Jill Schupp, D-Creve Coeur, who hopes to unseat U.S. Rep. Ann Wagner, R-Ballwin, this fall, backs Amendment Two. Schupp says it will ensure that an additional 300,000 Missourians have access to health care.

State Rep. Keri Ingle, D-Lee’s Summit, spoke about the issue on the Missouri House floor during the May budget debate. Ingle predicted that day that Missourians would approve Medicaid expansion at the ballot box.

Meantime, the coronavirus outbreak has impacted Missouri’s Medicaid numbers, as well as the budget.

The number of Missourians on Medicaid has increased by about 75,000 during the COVID-19 pandemic. Online statistics from the state Department of Social Services (DSS) show there were about 848,000 Missouri Medicaid enrollees in February.

That number increased to about 923,000 in May.