Gov. Martin O?Malley is proposing the state spend as much as $250 million more each year to offer health insurance to 100,000 uninsured people by adding them to the Medicaid rolls and subsidizing very small businesses that begin offering health insurance to workers.
The proposal hinges on passing new taxes and slot machine gambling in a special session of the General Assembly that begins Monday, O?Malley said Thursday. The plan comes two days after he disclosed $1.7 billion in budget cuts he would have to make if the legislature does not raise taxes, including doubling the cigarette tax.
“They are really part of the same mission to make our state a better place,” O?Malley said. “There is broad consensus in the General Assembly” for health care improvement. “If we?re unable to make progress, we will continue to backslide” on this issue.
The program includes raising the eligibility for Medicaid to 116 percent of the federal poverty level ? $20,000 for a family of three. Health Secretary John Colmers said Maryland currently has “extremely low eligibility levels” compared with other states. The program would be phased in over four years as additional revenues became available, Colmers said.
Del. Peter Hammen, D-Baltimore City, chairman of the Health Committee, sponsored a similar bill that passed the House this year. Hammen said the governor?s plan will break “the vicious cycle” of more people becoming uninsured and driving up the cost for everyone.
“It?s going to help all Marylanders out,” Hammen said.
Sen. Rob Garagiola, D-Montgomery, chairman of the Health subcommittee, said the plan would improve access, affordability and quality. He said that the Senate leadership, which killed the House bill last session, will support the governor?s measure. “It?s part of getting our fiscal house in order,” Garagiola said.
Subsidies of up to $1,000 per worker will be offered to businesses with fewer than 10 employees and which pay them less than $50,000. For these firms, the Maryland Health Care Commission will develop a benefit package that promotes wellness and prevention.
