Medicaid expansion: A tale of two states

Tags: colorado, medicaid, health care reform, kaiser health news, legislature

It’s no secret that Texas Gov. Rick Perry openly opposes federal health care reform. He has used every opportunity to reiterate that he will veto any effort by the legislature to participate in Medicaid expansion in Texas – an option granted to the states by last summer’s Supreme Court ruling. One source counts 14 states that have fully rejected accepting federal funds to extend health care coverage to low-income adults, while 20 states are fully participating in the expansion and 16 are undecided.

A state certain to participate in the expansion is Colorado, my new home state. The bill to expand Medicaid to 330,000 Coloradans passed both chambers of the General Assembly last week. Once the Senate approves amendments to the House version of the bill, it will head to the desk of Gov. John Hickenlooper, who has pledged to sign it into law.

In many respects (to the delight of this Texas native), the two states are very similar. Colorado has its urban capital, several other mid-size cities, and vast expanses of rural space. Residents also have a fierce loyalty to the state. And, until the past decade when control of the House, Senate, and the governor’s mansion has flip-flopped between the parties, Colorado has historically been conservative. The current split in the House is 37 Democrats, 28 Republicans. In the Senate, it’s 20 Democrats, 15 Republicans. And, of course, the governor is a Democrat.

As Colorado considered expansion, opponents (Republican lawmakers) argued that it would drain state coffers and leave the state footing the bill when generous federal funds run out. Proponents pointed to an analysis that shows Colorado will spend $133.8 million less over 13 years and create more than 22,000 new jobs over the same period, boosting the economy by $4.4 billion.

The lone Colorado Senate Republican who voted in support of the expansion told Kaiser Health News that he has “no choice but to support this.” He represents a district that includes several of the state’s poorest counties and says that hospitals in his district are “strained to the breaking point caring for the uninsured.” The Colorado Hospital Association supports Medicaid expansion in Colorado, as does the Colorado Medical Society.

Perhaps it’s no surprise that the fiscal argument is gaining ground in Texas among Republican lawmakers and conservative organizations who acknowledge the economic implications for rejecting federal dollars. George B. Hernandez Jr., president and CEO of the University Health System, said refusing the expansion will impose a 20 percent surcharge on Bexar County hospital district property taxes.

But Texas Republicans must tread carefully around this “radioactive issue,” as demonstrated by a strange sequence of events in the House last week when representatives approved a budget amendment that would have allowed for negotiations should Texas decide to participate in the expansion only to reconsider the vote hours later and ultimately pull it down. The concept still lives through a related budget rider approved by the Senate, and it will be a part of conference committee discussions.

The most promising plan standing, and one supported by the Texas Association of Business, is the so-called “Texas Solution,” House Bill 3791 by Rep. John Zerwas, M.D., R-Simonton. It would create a kind of voucher program designed to extend health coverage to the state’s poorest adults through the private marketplace and create a task force to reform Texas Medicaid. The House Appropriations Committee approved this measure last week on a 15-9 vote and it now waits to be heard by the full House.

Yet the proposal might never get a chance on the House floor. House Republicans in Texas represent chambers of commerce, hospitals, and other powerful entities that want to participate in Medicaid expansion. But if those representatives voted for anything resembling expansion, they would be hammered by powerful factions like the Texas Public Policy Foundation and Michael Quinn Sullivan’s Empower Texans. Why would Speaker Joe Straus put his members through what would most certainly be a damaging debate only to have the bill vetoed by the governor?

The arguments and the issues surrounding Medicaid expansion in both Colorado and Texas are the same. But Colorado will benefit from $12.28 billion of Medicaid funding while Texas will refuse $100 billion over the next 10 years and continue to bear the costs of a large population of uninsured poor citizens. The difference between the two states lies only in the makeup of their state governments. Once again the old adage is proven true: politics drives policy.

– kalfano

3 Comments

  • Beverly Nuckols said

    The Governor nor the Legislature are acting on their own. Texas voters sent them to Austin to do our will. Our Texas voters put that Party in place and we expect them to take charge. We drive the politics in the hope of driving policy.

  • Tony Anderson said

    "In many respects (to the delight of this Texas native), the two states are very similar. Colorado has its urban capital, several other mid-size cities, and vast expanses of rural space. Residents also have a fierce loyalty to the state..."

    Hmmm...let's take a look at a few relevant stats. Looking at education alone, the most recent census is very instructive. If we look at the rate of being uninsured, Colorado has 24% uninsured, while Texas has 24%. If we look at education level, 89.7% of Colorado adults have at least a high school diploma, compared to Texas' 80.4%. 36% of Colorado adults have a 4year or higher degree, while Texas has only a 26% rate. The median household income in Colorado is just shy of $60,000, which puts them solidly in the top ten, while Texas is at $49,000 which is solidly in the middle of the pack at 29th.

    To say that these two states are similar in their outlook on Medicaid expansion is ignorant at best, and at worst a gross misrepresentation.

  • cynthia curran said

    In many respects (to the delight of this Texas native), the two states are very similar. Colorado has its urban capital, several other mid-size cities, and vast expanses of rural space. Residents also have a fierce loyalty to the state..."

    Hmmm...let's take a look at a few relevant stats. Looking at education alone, the most recent census is very instructive. If we look at the rate of being uninsured, Colorado has 24% uninsured, while Texas has 24%. If we look at education level, 89.7% of Colorado adults have at least a high school diploma, compared to Texas' 80.4%. 36% of Colorado adults have a 4year or higher degree, while Texas has only a 26% rate. The median household income in Colorado is just shy of $60,000, which puts them solidly in the top ten, while Texas is at $49,000 which is solidly in the middle of the pack at 29th.

    To say that these two states are similar in their outlook on Medicaid expansion is ignorant at best, and at worst a gross misrepresentation.
    I always thought Colorado had more going for it. Colorado is not as much Hispanic which helps some of the stats. Colorado is abut 22 percent and Texas is about 38 percent. Perry would be smarter to follow Martinez in New Mexico which also has a poorer population. Martinez went for the expansion. Texas future will looked like New Mexico whether Perry or Texas Republicans like it or not. It will be one day 47 percent Hispanic unless Texas adopts an e-verify system.

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