Why We Must Accept Medicaid Expansion

Statement

Oklahoma is facing a serious health care crisis unless action is taken immediately. Over the past few weeks, the Oklahoma Health Care Authority (OHCA) was forced to increase copayments for Medicaid users, cut Medicaid provider rates by nearly eight percent and limit the number of visits per month to health clinics covered under Medicaid. The cuts that were required to simply balance the budget total more than $200 million annually. Even the chairman of the board for OHCA called these the most draconian cuts they have made since he has been with the agency and declared the changes were necessary due to the state budget shortfall.

The decisions made by the OHCA are unfortunate and disappointing, but also necessary due to poor state leadership. The fault can be squarely placed on Mary Fallin's shoulders with her refusal to accept Medicaid expansion dollars. She has the ability to take these dollars, paid in by Oklahomans, and bring them back to our state. With her refusal, Oklahoma dollars are going to other states to provide for their health care systems. Though many Republican governors around the nation initially refused to accept these funds, most have relented because of the clear need to help their citizens, keep hospitals open, maintain quality of life and create jobs generated by Medicaid expansion.

Thousands of Oklahomans currently rely on Medicaid, and their health care system is now in jeopardy. The current Medicaid coverage goes to the poorest of Oklahomans, including those unable to work due to injury or illness.

Medicaid expansion would extend coverage to the working poor, such as single mothers working two jobs to make ends meet or families trapped in minimum wage jobs struggling to simply get ahead. According to the Oklahoma Policy Institute, expansion would cover about 150,000 uninsured Oklahomans. It would also increase access for prevention and treatment, and lessen the burden on hospital emergency rooms.

Expansion would also have a positive impact on Oklahoma's economy. The Oklahoma Policy Institute reports more than 9,000 new jobs would result from accepting Medicaid expansion funds. These jobs would generate around $30 million in new tax revenue. Jake Henry, Jr., CEO of Saint Francis Health System, said, "It… would [inject] as much as $10 billion into the economy," and "[save] and [create] thousands of Oklahoma jobs." Meanwhile, rejecting the expansion has caused job losses. Mercy announced last month it was cutting up to 300 jobs in four states, including Oklahoma, due to the lack of Medicaid expansion. Simply put, Fallin's decision has inflicted economic harm on Oklahoma.

If hospitals close, and the Oklahoma Hospital Association has indicated that between twelve and thirty-six hospitals are at risk, we will continue to see more jobs lost. According to the Tulsa World, between half and three-quarters of rural hospitals are struggling financially. The closure of these hospitals would be disastrous for the communities they serve. The Medicaid expansion dollars would help maintain these hospitals by providing much-needed revenue.

While the reasons to accept Medicaid expansion are numerous, Fallin's key argument against it is weak. She claims the program is unaffordable, and, in her State of the State address this past February, said it would cost more than $850 million for Oklahoma over "a number of years." She ignores the fact that the economic gains from expansion through improved health care and the offset of job losses more than make up the difference of any costs the state will pay.

Fallin has advocated for continuing the Insure Oklahoma program, a system which I also support. While this is a wonderful program, one I wish the federal government had adopted over the Affordable Care Act, the simple truth is that this will only be retained for one more year. Also, Insure Oklahoma has dropped 7,000 Oklahomans from the rolls to keep it sustainable. In contrast, all these people will be covered through Medicaid expansion, along with nearly eight times as many Oklahomans who cannot access this program due to limited employer participation.

Oklahoma can stop the devastating cuts. We must accept Medicaid expansion for the benefit of Oklahomans. Fallin's refusal is one more reason we need a Governor who will work in the best interests of everyone in our great state.

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