$940 million incentives in American Rescue Plan SOS holds rally to encourage Governor Ivey to Expand Medicaid, since financial incentives are available

The Save Ourselves Movement for Justice and Democracy (SOS) held a rally and press conference on Tuesday, April 20, 2021 at the State Capitol to urge Governor Ivey to approve Medicaid Expansion because there are new financial incentives available in the American Rescue Act, passed by Congress and signed by President Biden. These incentives will provide $700 to $940 million in additional Medicaid reimbursement, over two years, to the State of Alabama for its current Medicaid participants if it Expands Medicaid to the working poor, who have incomes up to 138% of poverty. This would cover 300,000 or more Alabamians who are not covered now by health insurance coverage. The incentives raise the reimbursement level on all existing Medicaid recipients from 78% to 82% of allowable costs. This 5% increase translates into the millions of new revenues for the state based on calculations by the Center on Budget and Policy Priorities, a Washington, D. C. think-tank. “Governor Ivey has a second chance to cover the cost of initiating Medicaid Expansion for Alabama citizens, because of the incentives in the American Rescue Act. These incentives were provided to encourage states that had not adopted Medicaid Expansion in 2014, another opportunity to avail themselves of this health care benefit, especially in view of the health challenges of the coronavirus pandemic,” said Johnny Ford, former Mayor of Tuskegee and Co-Chair of the SOS Health Committee. Martha Morgan of the SOS Steering Committee said, “ It is a shame that Federal taxpayers in Alabama have been sending millions of their tax dollars to subsidize Medicaid coverage for working poor people in other states – when we have so many people in Alabama who need this same coverage. Governor Ivey, please act now to Expand Medicaid!” John Zippert, SOS Health Committee Co-Chair, explained “ Seven years ago, Alabama could have expanded Medicaid at no cost for three years, Governor Bentley did not take advantage of the offer then. Now Alabama has a second chance to get incentives for expanding Medicaid. We urge Governor Ivey to take advantage of this new opportunity. The Federal government is paying Alabama to get all of its citizens covered for healthcare. Now is the time for Alabama to Expand Medicaid.” Zack Carter, SOS Steering Committee member said, “ We cannot understand why Gov. Ivey will not accept this program to save Alabama lives. A Kaiser Health study showed that before the pandemic, three people in Alabama were dying every two days, 700 a year, because we did not expand Medicaid coverage. This is the same Governor that is using state funds to pay for state tropers to lead strike-breakers into the Brookwood coal mines, in yellow school buses. She has funds to break a strike but not to Expand Medicaid!” At the close of the rally, Johnny Ford warned, “ Gov. Ivey we will be back with hundreds of people, every week, to push you to Expand Medicaid!” WSFA-TV in Montgomery in its report on the SOS rally said they contacted the Governor’s office for a comment and her staff said they were still studying the American Rescue Plan to see what benefits it contains to assist the state in dealing with the pandemic. For more information on how you can join with SOS in the fight for Medicaid Expansion, contact Shelley Fearson at 334-262-0932 or visit the SOS website.

SOS alerts voters to urgency of Medicaid expansion

Shown above ANSC President John Zippert, Latasha Brown, Shelly Fearson, Senator Hank Sander, Jeanette Thomas, Johnny Ford and Faya Rose Toure

 

The Save Ourselves Movement for Justice and Democracy (SOS) a coalition of forty social justice organizations in the state, held a press conference at the State House in Montgomery, Alabama. State Senator Hank Sanders of Selma said, “We are here today to alert voters, candidates and the press to the importance of healthcare and the expansion of Medicaid in the November General Election. Governor Ivey, as Governor, can take the step of expanding Medicaid for thousands of people.” A study by the Kaiser Foundation indicates that 500 to 700 people each year in Alabama are likely to die without Medicaid expansion – so this is a matter of life and death. The Alabama Hospital Association, a trade association for over 100 hospitals in the state says, “If Alabama expands Medicaid, almost 300,000 uninsured Alabamians would receive health insurance coverage, an estimated 30,000 jobs would be created, and $28 billion in new economic activity would be generated.  Alabama would also save millions of dollars on current state services.  “On average, in Alabama, almost one out of every 10 hospital patients does not have health insurance, resulting in more than $530 million annually in uncompensated care,” said Danne Howard, executive vice president and chief policy officer of the Alabama Hospital Association.  “Currently, 75 percent of Alabama’s hospitals are operating in the red, meaning the dollars they receive for caring for patients are not enough to cover the cost of that care.  Expanding Medicaid would be a significant investment in the state’s fragile health care infrastructure and would help maintain access to care for everyone.”

“In Greene County because we are a poor county, one in three patients do not have any insurance, which means we provide an average of $100,000 in uncompensated care per month. Expanding Medicaid under the Affordable Care Act would help people in our county whose earn less than 138% of poverty (approximately $20,000 annual for a family of four) to secure affordable health insurance coverage,” said Dr. Marcia Pugh, Administrator of the Greene County Health System. Former Mayor of Tuskegee, Johnny Ford said “The SOS Health Committee would be remiss if we did not point out that Medicaid expansion is the issue, which must be in the forefront of voter’s minds as they go to the pools in one week. Walt Maddox and the Democratic candidates for statewide office have pledged to expand Medicaid to 300,000 working poor people on their first day in office. Incumbent Governor Kay Ivey has not expanded Medicaid during her tenure. She says that the state cannot afford the costs of expanding Medicaid. She is also supporting a proposed rule change, which will eliminate 70,000 caregivers from Medicaid unless they meet a work requirement, which will also make them financially ineligible for Medicaid coverage. Maddox says that Alabama needs to help its neediest people to receive health insurance coverage to improve healthcare and economic opportunities in the State of Alabama.” John Zippert, SOS Health Committee Co-chair pointed out that since 2010 when Medicaid expansion has been available under the Affordable Care Act, Alabama has lost $7 billion in Federal support under the program. For the first three years of the program, there was no cost to the states to participate. This has increased by 2.5% a year until it reached the maximum 10% this fiscal year. In addition in coming years beginning in 2020, the disproportionate share reimbursement rate payment to rural hospitals will decline because the program assumes coverage for low-income people in the state by Medicaid expansion under the ACA. Rural hospitals in states like Alabama, that have not expanded Medicaid, will begin to take a “double-whammy” for not expanding Medicaid – more patients without insurance coupled with lower reimbursement rates. Danne Howard, with the Alabama Hospital Association, notes that a recent study showed that hospitals in expansion states were 84 percent less likely to close than hospitals in non-expansion states.  “Alabama has had 12 hospitals close since 2011, and more are on the verge of closing if something doesn’t change,” she added. “Plus, the economic impact in other states has been tremendous; Louisiana has added 19,000 jobs; nearly 50 percent of new enrollees in Ohio have been able to receive mental health and substance abuse treatment, and the state has seen a 17-percent drop in emergency department use; Kentucky has seen an increase in state revenues of $300 million.” SOS calls this critical issue to the attention of voters and urges every registered voter to vote on November 6, 2018 with the need for equitable health insurance coverage in mind.