The Atlanta Journal-Constitution

Surprise Medicaid bill narrowly fails

With Republican opposition, Senate panel deadlocks 7-7.

- By Greg Bluestein gbluestein@ajc.com and Michelle Baruchman michelle.baruchman@ajc.com

A Republican-led Georgia Senate committee narrowly voted Thursday to kill a last-minute measure brought by Democrats to significan­tly expand Georgia’s Medicaid program.

The surprise measure, House Bill 1077, was defeated by a coalition of Republican­s who said they wanted to give Gov. Brian Kemp’s more limited expansion more time to generate support. After a suspensefu­l debate, the Senate Regulated Industries Committee deadlocked 7-7 over the proposal, with Republican Sens. Matt Brass and Carden Summers joining the Democrats to vote in favor.

The proposal would have empowered the state to seek a federal waiver so Georgia could purchase private health insurance plans for people in the state who are above the poverty line but still can’t afford to buy their own insurance plans through the Affordable Care Act. It was modeled after the “private option” plan adopted in Arkansas.

Republican lawmakers stood behind Kemp, who last year launched an alternativ­e to fully expanding Medicaid — the state-federal health care program for the poor and disabled — known as Georgia Pathways. His aides said the governor privately lobbied lawmakers to oppose the measure, which had a roughly $580 million price tag.

“Why shouldn’t we give him a chance to see if Pathways can work before you cut his legs out from under him?” asked Republican state Sen. Bill Cowsert, who chairs the committee that took up the measure.

It was a setback for Democrats, along with a growing number of Republican­s, who have said a full expansion is long overdue.

“We can’t kick the can down the road anymore,” said Democratic state Sen. David Lucas, who reminded lawmakers that U.S. Sens. Jon Ossoff and Raphael Warnock secured incentives in the coronaviru­s relief package to speed an expansion.

“That $1.2 billion is in D.C. waiting for Georgia to expand,”

Lucas said, “but how long will it be there?”

Boycotts and Burns

The vote came days after Senate Democrats threatened to vote en masse against a prized health priority of Lt. Gov. Burt Jones — a pending rollback of hospital regulation­s — if they can’t win promises to broaden health care access to hundreds of thousands of Georgians.

Democrats have said that opening new hospitals without expanding Medicaid, especially in rural areas, would further weaken hospitals because it would force them to compete for health care workers and patients.

And it surfaced weeks after House Speaker Jon Burns effectivel­y tabled the discussion of expansion in his chamber until next year by proposing a commission to study the issue. Burns and his deputies entered the session signaling they were receptive to expanding the program.

Republican­s centered on their support for Kemp’s Pathways to Coverage, which expanded Medicaid eligibilit­y for low-income people who work at least 80 hours per month or meet academic or other requiremen­ts.

It has drawn muted interest, with about 3,500 uninsured applicants enrolled in it through March out of an estimated 370,000 who could apply. And it has cost taxpayers at least $26 million, with more than 90% of that going toward administra­tive and consulting costs.

Kemp, meanwhile, hasn’t veered from his long-held opposition to full expansion of Medicaid, which he has said is too costly and inflexible. He instead favors the more limited Pathways program that ties work and academic requiremen­ts to eligibilit­y.

Even so, Kemp notably hasn’t publicly threatened to block or veto legislatio­n to fully expand Medicaid if GOP lawmakers embrace the idea, though he made clear in a recent interview that “I was never in favor of doing that last year or this year.”

Even with broader support, HB 1077 would have faced long odds of passing in 2024. The 40-day session ends next week, and rankand-file Republican­s who have long campaigned against Medicaid expansion would need to swiftly recalibrat­e their positions.

Still, some conservati­ves signaled a strategic shift. Brass, one of the chamber’s most influentia­l Republican­s, said that “massive inflation” has made it more difficult for struggling Georgians to qualify for Kemp’s program. He said he worries about employees at his business who need more health care access.

“Sometimes, roofs leak,” Brass said of the sort of unexpected costs that can strain a household’s finances.

A strategic shift?

Even though HB 1077 failed, the tight committee vote was the latest sign that some GOP leaders were departing from entrenched opposition toward expanding Medicaid.

That hostility has largely persisted since then-President Barack Obama muscled it through Congress more than a decade ago as part of the Affordable Care Act.

That seemed to change this year, when for the first time since the Georgia Legislatur­e voted in 2014 to give itself authority to expand Medicaid’s rolls, senior Republican leaders entered the session indicating they were open to a serious discussion about expanding the program.

With the 2024 election looming — and wide-open races for governor and other top offices in 2026 — some Republican­s hoped to neuter Democratic criticism of Georgia’s health policy by joining the 40 other states that have already expanded Medicaid.

Others harbor concerns over Kemp’s plan to extend Medicaid coverage to Georgians who meet work or activity requiremen­ts.

Pathways operates under a federal waiver granted in the final days of the Trump administra­tion that’s set to expire in 2025. Some Republican­s say it’s unlikely to get an extension if President Joe Biden is reelected, since he and other Democrats have pressed states to adopt a broader expansion.

Many Republican­s favor a program adopted in GOP-led Arkansas, where 250,000 additional residents are eligible for Medicaid coverage under a policy that health care analysts have dubbed the “private option.”

Under the Arkansas plan — which also operates under a federal waiver — the state used expansion dollars to buy private insurance for uninsured residents.

 ?? MICHELLE BARUCHMAN/AJC ?? Two Republican­s voted with Democrats in favor of fully expanding Medicaid in Georgia. The bill failed to advance 7-7, but it indicates some Republican­s are wavering in their opposition.
MICHELLE BARUCHMAN/AJC Two Republican­s voted with Democrats in favor of fully expanding Medicaid in Georgia. The bill failed to advance 7-7, but it indicates some Republican­s are wavering in their opposition.

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