Like many other states, Missouri has begun considering whether to use the option provided by the federal health care reform law to provide access to Medicaid to adults below 138% of the federal poverty level (FPL).  As we noted in a recent blog post, a study committee in  the very conservative state of Idaho voted unanimously last month to recommend that the Governor and legislature take advantage of the Medicaid option in order to save money while substantially improving access to preventive health care. 

Over the past week or so the issue has been getting increased attention in Missouri.  The Democratic governor of the “show me” state, Jay Nixon, is working hard to show Republican legislators why Missouri should utilize the federal funding to improve health care access, and he said last Thursday that it would be part of his 2013 budget.  Governor Nixon, who was reelected last month, has used many of the same fiscal arguments cited in Idaho and in the updated Urban Institute/ Kaiser Commission report that we summarized in a blog post on Tuesday.  In addition, he has been making a broader economic development case for taking the federal Medicaid funding.

A University of Missouri study concluded that the cost to the state, which will be small compared to the large infusion of federal funding, would be more than offset by growth in jobs and revenue.  The report estimates that Medicaid expansion would generate 24,000 jobs next year and bring in $856 million in new revenue to state and local governments by 2020.  The Governor will be working with Missouri hospitals, who appear to be very supportive, and with others in the business community to try to win over the GOP legislature, which is very leery of “Obamacare” and increased spending for safety net services. 

Read more in this editorial in today’s Springfield News-Leader.

Jon Peacock