Modern Healthcare

Obama speech kicks off new drive to expand Medicaid

- By Beth Kutscher

NASHVILLE—With the Affordable Care Act’s premium subsidies protected for now, the Obama administra­tion and the hospital industry are stepping up their efforts to persuade the 21 holdout states to expand Medicaid to lowincome adults.

President Barack Obama spoke last week in the capital of Tennessee, a state where Republican Gov. Bill Haslam recently was blocked by the GOP-controlled Legislatur­e in his effort to establish a conservati­vefriendly version of Medicaid expansion. Last month’s U.S. Supreme Court decision in King v. Burwell preserved subsidies for 156,000 Tennessean­s.

An obviously upbeat Obama talked about pushing ahead with healthcare reform. “One thing I’m hoping is that with the Supreme Court case now behind us, we can focus on how to make it better,” Obama said during his speech at Nashville’s Taylor Stratton Elementary School, which was attended by a who’s who of healthcare leaders. “There are still areas of improvemen­t and there are still people who are uninsured.”

Since the ruling, Democratic governors in Alaska, Missouri and Virginia have indicated they want to reopen discussion­s about expanding Medicaid, as has Haslam. Meanwhile, Republican-led Utah is in talks with the administra­tion about an expansion model. Supporters hope the King ruling will give their cause momentum. But opposition to the ACA and Medicaid expansion remains powerful among Republican­s, fueled by fiery antiObamac­are campaign statements from presidenti­al hopefuls, including the governors of Louisiana and Wisconsin.

Obama mentioned Medicaid expansion only obliquely in his prepared remarks. But pressed by an audience member, the president said states that have expanded Medicaid have reduced their uninsured rate more quickly than other states. “Here in Tennessee, that’s probably a couple hundred thousand people who could benefit,” he said. “Given the strong history of innovation of healthcare in Tennessee ... you all should be able to find a solution. The federal government is … ready to work with the states that want to get going.”

Conversati­ons are starting among GOP state policymake­rs about whether to now expand Medicaid, said Trish Riley, executive director of the National Academy for State Health Policy, which will host a summit July 9 on the issue. “The question is whether the politics change,” she said.

States may be more comfortabl­e expanding Medicaid with stronger budgets and an improved economy, said Joseph Antos, who focuses on healthcare at the conservati­ve American Enterprise Institute. Still, he argued that HHS needs to be more flexible in working with GOP-led states, some of which are seeking to impose work requiremen­ts, premium contributi­ons and other personal- responsibi­lity rules for new beneficiar­ies. “Until HHS gives a signal to the states that they’re actually open to new ideas, I don’t think we’ll see more states jump on this,” Antos said.

But Brietta Clark, a professor at Loyola Law School in Los Angeles, said HHS is limited in what it can approve. “The administra­tion has been really open and flexible with working with the states,” she said. “It’s the Affordable Care Act that put clear constraint­s on what the states can do.” For example, some Republican­s have proposed expanding eligibilit­y only to people up to 100% of the federal poverty level, but the ACA sets the threshold at 138%.

In Tennessee, the political winds may be shifting since the Legislatur­e shot down Haslam’s Insure Tennessee proposal this year. That plan would provide vouchers for Medicaid eligible people in the Medicaid coverage gap to purchase private coverage. It would require hospitals to pick up an increasing share of expansion costs when federal match dollars drop from 100% to 90% after 2016.

In Nashville—the center of the country’s for-profit healthcare industry—the fight for Medicaid expansion has been particular­ly contentiou­s. That’s because hospital and healthcare companies such as HCA have supported the ACA’s Medicaid and private-insurance expansions, given that they offer millions of Americans a way to pay their medical bills.

During his remarks, Obama thanked former Senate Majority Leader Bill Frist, a Tennessee Republican who has been supportive of the ACA. The King ruling “allows an opportunit­y for Tennessean­s to be further educated about the benefits of Medicaid expansion,” Frist said in an interview after the president’s remarks. “Momentum is moving in that direction, but it will require bipartisan and nonpartisa­n support to get there.”

“I hope this ruling will encourage state government­s that the intent of Congress has to be validated and they’ll expand their Medicaid programs,” said Bill Carpenter, CEO of Brentwood, Tenn.-based LifePoint Health, who also attended the speech.

At the presidenti­al speech, the Tennessee Justice Center rallied a group of supporters wearing purple “Insure Tennessee Now!” T-shirts. “People finally understand who it will help,” said Michele Johnson, the center’s executive director. “We are absolutely overwhelme­d with hope that this thing is going to pass.”

 ??  ?? President Barack Obama rallied speech attendees to seek coverage extention.
President Barack Obama rallied speech attendees to seek coverage extention.
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