By Gongwer Staff
Posted: February 6, 2013 12:24 PM

By Rep. Louis Terhar (R-Cincinnati)

The Governor’s biennial state revenue budget has been released. The two-year $63.3 billion budget encompasses policy proposals that will affect the lives of every Ohioan, and thus requires appropriate time for consideration by both houses of the General Assembly.

As the budget process plays out I will work to keep all of you informed of changes as they occur. For now, I would like to touch on one subject that I’m sure you will be reading quite a bit about: Medicaid expansion.

Last summer, the United States Supreme Court ruled that Obamacare is constitutional because of the congressional power to tax. However, the decision on a key component of the law, Medicaid expansion, is left up to the states. Medicaid expansion in Ohio, currently contained in the Governor’s budget submission, will be a major point of debate in the House.

To incentivize the states to expand Medicaid, the federal government has promised to pick up all the costs for newly eligible individuals for the first three years, and 90 percent of the costs in the fourth year. Cost sharing after year four is unknown. In Governor Kasich’s proposed budget, Ohio will accept federal dollars to expand Medicaid coverage for close to 275,000 Ohioans who are currently uninsured.

Those families earning up to 138 percent of the federal poverty level—$31,802 a year for a family of four—would now qualify for Medicaid healthcare coverage.

Advocates for the Medicaid expansion point out that the state will save $235 million over the next two years and will free up about $100 million in local funds for mental health and addiction services. Further insurance premium increases may be reduced for everyone because less people will be going to the emergency room for non-emergency related situations. However, current Medicaid law does not require that Medicaid recipients use the least expensive adequate care facilities as many private insurance policies require.

Critics have pointed out that Medicaid expansion will further expand the current welfare state that is already seen as spiraling out of control. In addition, to approve Medicaid expansion will grow an inefficient and very expensive system. Finally, if as a result of expansion, additional people under 90% of the poverty level “sign up” for Medicaid, the state will be required to pay 36% of the cost.

Currently, I am still weighing the pros and cons of expansion, and I would like to hear your feedback on the Medicaid issue.

Finally, I will be writing additional columns on other issues included in the state budget. If there is an issue that you would like to address, please let me know.