Missouri Gov. Matt Blunt (R) on Tuesday announced a three-phase planto help low-income workers obtain health insurance through governmentsubsidies, the Kansas City Starreports. The proposal aims to extend coverage within a year to 131,500working adults with incomes up to 185% of the federal poverty level.
Underthe plan, the state in October would seek bids from private insurers toprovide coverage, according to Amy Blouin, executive director of the Missouri Budget Project.In the first phase, Medicaid would provide health coverage forcustodial parents with incomes up to the poverty level, and benefitswould be similar to those provided to state workers. Families withincomes below the poverty level would not contribute premiums and wouldbe charged copayments ranging from 50 cents to $3 per service.
Missouri Health Insurance
Inthe second phase, Medicaid would pay for coverage of working adultswith incomes up to 185% of the poverty level. Those adults would berequired to contribute higher copays and premiums, but totalcontributions would not exceed 5% of the person's income.
Underthe third phase, which is scheduled to be implemented by early 2009,the state would provide catastrophic coverage for employees ofbusinesses with 25 or fewer workers. Eligibility would be limited toworkers with incomes of no more than about 250% or 300% of the povertylevel. The plan requires approval from the state Legislature and thefederal government.
Funding
The plan would befunded by a combination of state taxes, special Medicaid taxes, federalmoney hospitals receive for providing indigent care and federalmatching funds. Steve Renne, deputy director of the state's Department of Social Services,said the program is expected to cost less than $50 million fromFebruary 2008, when it begins, through June 2008, when the fiscal yearends. The program is expected to cost $631 million annually by 2010.State contributions would be capped at $46.8 million, while othercontributions would increase, according to Renne (Wagar, Kansas City Star, 9/18).
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