Honest Policy...

While some dedicated legislators continue to work in Jeff City to try and salvage what they can of Missouri's medicaid there are a few points that voters should keep in mind for the next two years. The Center on Budget and Policy Priorities published an excellent analysis of the Governor's sales pitch for medicaid cuts.

•...the Governor uses a misleading measure of where the state stands relative to other states.  When more appropriate measures of Medicaid costs are used, Missouri is found to spend less on Medicaid than the majority of states. In terms of state general fund Medicaid expenditures per state resident, Missouri ranked 34th in the nation in 2003. In terms of state general fund Medicaid expenditures as a share of state personal income, Missouri ranked 38th in the nation in 2003.

•...national studies demonstrate that Medicaid is less expensive than private health insurance and that Medicaid costs have been growing less rapidly in recent years than private health insurance. A study by Urban Institute ... found that the average amount Medicaid spends on medical costs for adults is 30 percent less than ... if the same people were instead covered by private health insurance.

•Missouri ranks 34th in the nation in Medicaid expenditures per enrollee.

•...for each dollar by which the state would lower Medicaid expenditures financed by state funds, it would lose $1.53 in federal matching funds that finance the provision of health care to low-income Missourians and go into the Missouri economy. A recent study, based on analyses by economists at St. Louis University, indicates that this loss of federal funds would have repercussions across the state and lead to the loss of about 10,000 jobs and more than $700 million in economic activity in Missouri. A Medicaid reduction of this magnitude thus would adversely affect Missouri’s economy.

The economic effects of the Medicaid cuts will likely end in a net negative for the state. The political fallout will likely end in a net negative for the Republican Party as well.