A decision by Wisconsin Republican Gov. Scott Walker to opt out of the Affordable Care Act’s Medicaid expansion program will result in a blow to more than 95,000 residents of the state who will no longer qualify for the medical coverage.
Walker’s move is seen as a step in line with conservative lawmakers and constituents dead set against the ACA, claiming it was a socialist move by the Obama administration to take freedom away from American citizens, in terms of their health care coverage. The move was touted by Walker as one laced with the motive of freedom, claiming it was necessary to rid Wisconsinites of government control and allow them to pursue their dreams.
“Government can provide a hand up, but should not provide a permanent handout,” Walker said in a statement. “We need to break cycles of generational dependence on the government. Reforming entitlements, like Medicaid and unemployment insurance, puts an emphasis on independence and the dignity that comes with working hard to build a prosperous future of your own choosing.”
The refusal of Medicaid expansion will change the state’s Medicaid program, which has historically applied to those earning 200 percent of the poverty level, which equates to a household income of $47,100 for a family of four, to 100, which will now only apply to families of four living off $23,500.
Yet Walker is promising those who are being let go from Medicaid that they have a better option — one that’s offered through the ACA.
Those who will no longer qualify for Medicaid expansion will now be allowed to benefit from the ACA’s exchanges for subsidized private-sector health insurances.
Yet, even under that program, families earning up to 133 percent of the federal poverty level will have to pay 2 percent of their income in premiums. That includes those who previously received coverage under the state’s Medicaid program. Families making 200 percent of the poverty level, who previously were covered under Medicaid, will owe 6.3 percent of their income on premiums.
Those who qualify for the medical care exchange program are families whose income is less than 400 percent of the poverty line — $89,000 for a family of four. For those at the top of the scale, the benefit will be felt. Yet for those who were kicked off Medicaid, it will come with a financial burden.
While many of those within that bracket will still qualify for exchanges for subsidized private-sector health insurance, Walker’s proponents claim his refusal to accept expanded health insurance for the state’s poor is a decision not based on the best interest of his state’s residents.
“With these Medicaid reforms, we will preserve an essential safety net for our neediest, while protecting our state’s taxpayers from uncertainty,” Walker said in his statement. “In Wisconsin, we made tough, but prudent, decisions in the last two years to get our state on the right track. We truly understand the consequences of avoiding tough choices. Our plan safeguards Wisconsin taxpayers from unnecessary risk and builds on Wisconsin’s strong track record of providing affordable health care to our people.”
The burden, however, could be felt by those now having pay premiums — and employers who are tasked under ACA to pay penalties for employees taking part in the exchange program, costing Wisconsin corporations up to $36 million in additional taxes.
“Any projections of the ‘net’ costs of Medicaid expansions should reflect the very real costs of such liabilities to employers,” a report from the firm, Jackson Hewitt, in opposition to the governor’s move, said.
Walker’s move is also opposed by Milwaukee County Executive Chris Abele, who said the governor should rethink raising the Medicaid level from 100 percent of the poverty line to 133 percent — a move he said would truly benefit taxpayers.
“There’s no amount of taxes that’s too small to avoid if we can avoid them without impacts on the state,” he told the Milwaukee Journal Sentinel. “Everybody who’s looking out for taxpayers and the people they serve should be looking at this.”
Walker is among a handful of governors choosing to opt out of the program.