President-elect Barack Obama’s economic stimulus package could include Medicaid matching funds for states, which could ease some of Maryland’s costs for the expansion.
“It’s working,” Vincent DeMarco, president of the Maryland Citizens Health Initiative, said of the state’s recent Medicaid expansion.
But even with proposed federal dollars to help states fund Medicaid, Maryland’s expanded health care coverage could be in jeopardy as state lawmakers grapple with a hefty budget deficit, health advocates say.
Since July 1, more than 25,000 people have enrolled for benefits after they were expanded to cover parents making less than 116 percent of the poverty level, which is about $20,400 for a family of three. Previously, an adult had to make less than half of the poverty guidelines to qualify.
Starting this July, health care coverage will be expanded even more to cover nonparent adults making that less than 116 percent the poverty level.
But with Maryland facing a $1.9 billion deficit, the expansion could be threatened, health advocates said.
“Everything is on the table,” said Del. Dan Morhaim, D-Baltimore County, who supports Medicaid expansion.
“There’s nothing sacred right now, and nothing should be, and each thing needs to be defended.”
The expansion plan is expected to cost $38 million in fiscal 2009 and grow to nearly $280 million by 2013.
Expanding Medicaid reduces the amount of uncompensated care in the state’s hospitals, DeMarco said. That reduces the burdens on insured residents, who are left covering those costs, he said.
“This is a money saver,” he said.
Maryland AARP Director Joe DeMattos said he recognized the economic crisis, but said cutting Medicaid would be a poor decision that would affect many Marylanders.
“It’s not the right time to end this new outreach to those without coverage in Maryland,” he said.
The latest expansion would help cover adults over 50 who are too young to receive Medicare, but make too much money to qualify for Medicaid, DeMattos said.
“These folks will be very well-served by the extension that goes into place in July,” he said.
It’s hard to estimate how many people would be covered under this expansion, he said, but it would likely be in the “high tens of thousands.”
“It’s too soon,” DeMattos said, “to pull the rug out for those other Marylanders whose lives could be positively changed.”
