Policy & Regulation News

AK Gov. Proposes Sept. Medicaid Expansion Reform Under ACA

By Jacqueline DiChiara

- Medicaid expansion may be the key to cutting state spending. The governor of Alaska, Bill Walker, recently notified a state committee that he plans to accept both federal and Mental Health Trust Fund Authority money to expand Medicaid to underprivileged adults. In a letter to the Legislative Budget and Audit Committee last week, Governor Walker submitted a mandatory 45-day notice of his mission to expand Medicaid within the state. Walker poses the provocative question: healthcare or bankruptcy?

expansion in medicaid

According to a press release from the American Hospital Association (AHA), a total of $146 million may be generated within 1 year alone if Medicaid to low-income adults is extended, as sanctioned by the Affordable Care Act (ACA). Resultantly, 20,000 more Alaskans could be granted access to healthcare.

The total 2014 population of Alaska, as reported by the US Census Bureau, is over 736,000; these estimated 20,000 more working Alaskan individuals make up 2.7 percent of the state's total population.

Are similar Medicaid expansion efforts firing up the economy?

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  • Governor Walker’s initiative is merely one piece of a much larger Medicaid expansion puzzle. Approval of Medicaid expansion efforts are widespread. Both governors and legislators among 29 states and the District of Columbia agreed to enact Medicaid expansion efforts; ten governors and legislatures across 5 states approved Medicaid expansion.

    As RevCycleIntelligence.com reported, there is a direct correlation between Medicaid expansion and the creation of thousands of new jobs and a stimulation ripple effect of sorts upon the greater economy.

    “Every day that we fail to act, Alaska loses out on $400,000,” states Governor Walker within a press release. “With a nearly $3 billion budget deficit, it would be foolish for us to pass up that kind of boost to Alaska’s economy,” he adds. Walker's initial Medicaid expansion reform efforts were unsuccessful due to funding hiccups.

    Medicaid expansion would cause state spending to decrease by $6.6 million within the first year, confirms Walker’s press release. Within 6 years, savings from state general funds will top $100 million.

    “Thousands of Alaskans and more than 150 organizations, including chambers of commerce, local hospitals, and local governments, have been waiting long enough for Medicaid expansion,” Governor Walker explains. “It’s time to expand Medicaid so thousands of our friends, coworkers, neighbors, and family members don’t have to make the choice between health care or bankruptcy.”

    Adds Valerie Davidson, the Department of Health and Human Services (HHS) Commissioner, “Expanding Medicaid will save lives, improve the economy, save the state money, and serve as a catalyst for reform. The department is ready to make this happen and do what it takes to help Alaskans access health care.”

    What’s next for Alaska’s Medicaid expansion request?

    The Legislative Budget and Audit Committee has 3 choices in response to Governor Walker’s aforementioned attempt to boost Alaska’s economy. Says the press release, within 45 days, the committee can “recommend that the state accept the federal and Mental Health Trust Fund Authority money as outlined in the Governor’s letter; recommend the state not accept that money; or provide no response[;] legislature could call itself into a special session to address Medicaid expansion.”

    As RevCycleIntelligence.com previously reported, Medicaid expansion “seems like a definite win for providers overall.” Whether or not it will help empower Alaska’s economy is yet to be seen. Healthcare vs. bankruptcy is indeed a debate that should not require addressing.