Health Care Reform, Medicaid | featured news

Sandra Pico is poor, but not poor enough... Many working parents like Pico are below the federal poverty line but don't qualify for Medicaid, a decades-old state-federal insurance program. That's especially true in states where conservative governors say they'll reject the Medicaid expansion under Obama's health law.

"You are still paying for that coverage expansion but not getting the benefit of it," said Herb Kuhn, president of the Missouri Hospital Association. "So you as a state are exporting your dollars to another state. If you have some adjoining state that accepts (the Medicaid expansion) then you are basically sending your dollars to your neighbor."

Democrats say the extra federal money attached to the expansion will prove too good for most governors to pass up, especially as Medicaid and other healthcare costs continue to soar... "My guess is that they will beat up the president for passing a great bill until he's re-elected and then join up and take the money because they know it's the best thing for their states," he told Reuters.

Health insurer WellPoint Inc will buy rival Amerigroup Corp for $4.46 billion in a major bet on the expansion of the U.S. government's Medicaid health plans for the poor.

Texas Governor Rick Perry said on Monday his state will not implement an expansion of the Medicaid program for the poor or create a health insurance exchange, leaving the state with the highest percentage of people without health insurance outside President Barack Obama's signature law.

If governors opt their states out of the health law’s Medicaid expansion — as many are now threatening to do — it’s the poorest Americans who would find themselves getting the rawest deal.

Republican politicians across the country claim that Obamacare’s expansion of Medicaid, the widely popular program which makes health insurance available for lower-income Americans, will increase costs for states. Ten Republican governors have pledged not to accept the Medicaid expansion funds and 22 other governors are considering turning down the money.

Republican governors like Rick Scott of Florida who say they will defy President Barack Obama and opt out of a planned expansion of Medicaid health coverage for the poor are setting up a fight with the health care providers in their own backyards.

The expansion of Medicaid in the health care law, if it is upheld, would greatly increase the number of people served — and add to the program’s costs.

Many states have expanded eligibility for, and simplified access to, the children's Medicaid program. This has helped shrink the number of uninsured children from 6.9 million in 2008 to 5.9 million in 2010. Experts say the Affordable Care Act, the federal health care overhaul that requires states to maintain income eligibility levels and discourages other barriers to coverage, has played a key role in the improvement.