Governor Expected to Announce Wednesday that He Won’t Use Medicaid Expansion Funding

Tuesday, February 12, 2013 at 7:50 PM by

Decision Would Forgo $44 Million in Potential Savings in the 2013-15 Budget

The Milwaukee Journal reported this afternoon that the Governor is expected to announce on Wednesday that the state won’t take the federal funding provided by the Affordable Care Act (ACA) to close the current gap in BadgerCare for low-income adults who don’t have dependent children.  From 2014 through 2016, that funding would cover all of the cost of covering newly eligible adults, with the federal share gradually declining to 90%.

Though we are awaiting details, it appears that the Governor will propose adding some coverage for childless adults – with that state paying its usual 40% share of the increased cost.  To offset that increase, it appears that the plan will make some parents ineligible for BadgerCare.

Using the ACA opportunity to cover all childless adults up to 138% of the federal funding would make the cuts to parent coverage unnecessary.  In fact, as we explained in a blog post last week, the Legislative Fiscal Bureau estimated that the 100% funding would actually save about $44 million in the 2013-15 biennium, by replacing current state funding for the childless adults now in the BadgerCare Core Plan. 

Our WCCF blog post today takes a preliminary look at some of the potential pitfalls of a reduction in coverage for parents in BadgerCare.  We’ll follow up tomorrow with a closer look at the proposal.

Jon Peacock

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