Missouri Foundation for Health Archives

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.