On his first full day in office, Democratic Gov. John Bel Edwards is reversing course from his Republican predecessor and starting the process to expand Louisiana’s Medicaid program.
The Associated Press reports Edwards signed the executive order today, ahead of President Barack Obama’s visit on Thursday to Baton Rouge, where he’ll champion his federal health care overhaul that allows for the Medicaid expansion.
While at least one business group issued a statement objecting to the expansion plan, organizations representing health plans, seniors and hospitals issued statements cheering the move.
“Small businesses are deeply disappointed in the governor for taking it upon himself to put Louisiana in such a precarious financial situation,” says Dawn Starns, Louisiana director of the National Federation of Independent Business. “Washington might be paying 100 percent of the cost of expansion today, but Louisiana is going to have to come up with at least 10 percent by 2020, and there’s no guarantee Congress won’t shift even more of the burden onto the backs of Louisiana’s small businesses as it struggles with the $19 trillion national debt. Couple that with Louisiana’s nearly $2 billion deficit, and you’re looking at a real financial crisis down the road.”
Paul Salles, president and CEO of the Louisiana Hospital Association, released a statement applauding Edwards and vowing to work with his administration and the state Department of Health and Hospitals to see the plan to fruition. Salles says hospitals in the state and other health care providers are even prepared to help DHH in the enrollment process.
“By moving forward with coverage expansion, today’s executive order helps to improve the health of our entire state. Reducing the number of uninsured adults in Louisiana makes it easier to improve access to needed care, to limit costs for families and individuals with private insurance, and to create greater stability in Louisiana’s state budget,” Salles says. “To help the DHH simplify these enrollment efforts, many Louisiana hospitals and other health care providers have agreed to provide support for additional DHH enrollment staff. This effort will save Louisiana money on administrative costs and place enrollment staff on-site in health care facilities where they can reach more uninsured patients.”
The Louisiana Association of Health Plans is also applauding Edwards’ decision, saying it will further support the five Medicaid providers that make up Bayou Health.
“Gov. Edwards’ historic first action shows his commitment to Bayou Health and the 300,000 health insurance beneficiaries in Louisiana,” says LAHP CEO Jeff Drozda in a statement. “According to data provided by the Louisiana Department of Health and Hospitals, Bayou Health is saving the state about $24, or almost 9 percent, per member, per month.”
The state chapter of AARP also chimed in with support for Edwards’ plan, saying it will help almost 49,000 Louisiana adults under the age of 65 who have lost their jobs or who are struggling without health benefits, citing data from the Kaiser Family Foundation.
Edwards says he wants to have government-funded health insurance cards in more people’s hands by July 1.
Under the governor’s plan, Louisiana would join 30 other states that have undertaken Medicaid expansions, including several states overseen by Republicans. But expansion efforts have been stymied in most Southern states amid GOP resistance.
It’s unclear whether Louisiana’s Republican-led Legislature will try to throw up roadblocks to slow down Edwards’ expansion plan.
