January 04, 2013 12:45 AM UTC

Hickenlooper Announces Big "Obamacare" Medicaid Expansion

• 3 Comments
• by: Colorado Pols

A press release from Gov. John Hickenlooper’s office today:

Gov. John Hickenlooper announced plans today to save more than $280 million in Medicaid spending over 10 years, permitting the prudent expansion of coverage in Colorado. Projections show the savings, existing provider fee structure and other health-related revenues will more than cover the cost of the expansion.

“We worked diligently over the past several months to find savings in order to expand coverage,” Hickenlooper said. “Not one dollar from the state’s general fund will be used for this expansion, even in 2017 when the federal government begins to reduce its share.”

The new coverage levels are authorized by the federal Affordable Care Act and will expand Medicaid coverage to Coloradans earning up to 133 percent of the Federal Poverty Level (FPL) beginning on Jan. 1, 2014.

The AP via CBS4 adds context:

At least 14 states and Washington, D.C., already have indicated they would try to expand Medicaid, a signature goal of the new health care law. Governors in nine states have said they won’t participate. A Supreme Court ruling last summer made the Medicaid expansion voluntary for states, rather than mandatory.

The Medicaid overhaul is one of the two main ways the federal health law expands coverage to most of the 50 million uninsured U.S. residents.

Here’s a statement from the Colorado Consumer Health Initiative:

We applaud Governor Hickenlooper for supporting the extension of quality, affordable healthcare to 160,000 uninsured Coloradans through Medicaid.  This is a crucial investment in the economic security of our state. We look forward to working with the administration to plan the new Medicaid program this year and implement it next year because all Coloradans should be able to get the health coverage they need, when they need it.

And the Colorado Hospital Association:

CHA commends Gov. Hickenlooper for his decision to support Medicaid expansion under the provisions of the ACA. Strengthening and expanding Medicaid will lead to improved physical and economic health for all of Colorado. More than 161,000 Coloradans will now be eligible for health care coverage through Medicaid. That means thousands of Colorado families will have access to the primary and preventative care, early diagnoses and treatment they need in order to live healthier and higher quality lives.

The expansion of Medicaid to cover some 160,000 more uninsured Coloradans is mostly financed, at least in the short term, through the Affordable Care Act a.k.a. “Obamacare,” through 2017 when the state’s share of the cost will gradually increase to 10%. Even then, Hickenlooper says the savings his administration is finding in the system, the hospital Medicaid provider fee passed in 2009, and other changes should account for the expenditure. This will help hospitals struggling to care for uninsured patients, and help all the rest of us who pick up part of those costs, in addition to increasing affordable access to health care.

And again, more people with health coverage means a healthier population generally. If you think about that every time a stranger coughs in your personal space, for example, it should be easy to understand how expanding access to care helps everybody. Somewhere in there that becomes good for the economy, too, a point not lost on Colorado’s pro-business Governor.

One thing we haven’t seen yet is objections from the GOP minority, but no doubt they are coming. Hickenlooper doesn’t need legislative approval for this expansion, which he claims will not impact the general fund, but that’s unlikely to stop Sen. Greg Brophy from complaining about all the extra money poor people will have for air conditioning and lottery tickets now.