Chamber supports Medicaid expansion in Missouri

Dear Editor:

The Nevada/Vernon County Chamber of Commerce Board of Directors voted recently to support Medicaid expansion in Missouri for the good of its members and the surrounding communities. The Chamber of Commerce further supports Governor Nixon's provision to repeal the expansion of Medicaid if the federal government breaks its promise of federal funding. Finally, the chamber encourages our state to continue to look at ways to reform the Medicaid system to ensure a more sustainable program in the future.

Gov. Nixon's proposal would bring $5.7 billion to Missouri and provide health coverage to an additional 300,000 Missourians over the next three years -- at no cost to the state. Not expanding Medicaid could cost Missouri more than 9,000 jobs and an increase of $1.1 billion in insurance premiums to the insured, according to an analysis from the Missouri Hospital Association. This forecast is based on cuts included in the Affordable Care Act and Budget Control Act of 2011, which when combined, reduces hospital reimbursement by $4 billion between 2013 and 2019.

The Medicaid expansion proposal will cover hundreds of thousands of low-income working Missourians who simply cannot afford health insurance. Right now, some Missourians actually face the prospect of losing health coverage if they go back to work. "Bringing the dollars we send to Washington back here to Missouri through an expansion of Medicaid will strengthen families, protect taxpayers and grow our economy," Gov. Nixon said.

A recent study from the University of Missouri found that Medicaid expansion could create more than 24,000 sustainable jobs, significantly boost state revenue and reduce the cost of health insurance for Missouri businesses and families. On the flip side, however, in addition to the cost to Missouri's economy through losses in jobs and capital investment, Missouri businesses could bear an increased share of the cost of the uninsured. The cost shift, also known as the "hidden health care tax," would likely increase in the absence of Medicaid expansion. These costs are borne by businesses and individuals and the $4 billion in cuts could increase the costs by $1.1 billion through 2021.

"The Nevada/Vernon County Chamber of Commerce Board of Directors is in support of Medicaid expansion, because this program is economically beneficial to our medical industry (increasing reimbursement rates while decreasing obligations to the private insurance sector), helps reduce the uninsured population, prevents further cost shifting, creates jobs, and improves the health of our workforce. Work is a value that should be rewarded, not discouraged" noted Chamber President Dr. Ron Schowengerdt.

For more information on the proposal for Medicaid expansion and the growing number of business organizations, including the Missouri Chamber of Commerce, that have endorsed this reform, you can visit the Missouri Hospital Associations website at www.web.mhanet.-com.

Jennifer Eaton,

Nevada/Vernon County Chamber of Commerce

Executive Director