As the 2006 session of the Missouri General Assembly opens, Governor Matt Blunt is defending last year’s Medicaid cuts and arguing that the savings from those cuts will help bankroll new funding for Missouri’s public schools. Meanwhile, a citizens’ effort is underway to make an end run around the legislature and the governor in order to restore some of the Medicaid cuts.

Last year the legislature ended health coverage for more than 78,000 working parents by cutting income eligibility from seventy-five to twenty-two percent of the federal poverty level. Under the new guidelines a family of three cannot qualify for Medicaid with a monthly income of over $292.

Senator Pat Dougherty (D-St. Louis) wants to restore health coverage for at least some of these working parents. A bill he has filed – SB 796 – would allow more of a parent’s earned income to be disregarded when determining Medicaid eligibility.

The Missouri Catholic Conference is supporting SB 796 as a way to honor the dignity of work and workers. Catholic teaching indicates workers should have access to affordable health care. But Dougherty’s bill and similar efforts are opposed by the governor and legislative leaders.

In response a citizens’ effort is underway to raise the tobacco tax in order to restore some of the Medicaid cuts. The proposal would hike the cigarette tax by eighty cents thereby raising about $351 million dollars. About $102 million dollars of this sum would be allocated to restoring health coverage for working parents. Another $102 million would be used to improve Medicaid reimbursements to doctors and other health providers while other portions of the new tax revenue would fund smoking prevention programs, emergency room care, public health centers and emergency ambulance services. To get on the November 7, 2006 election ballot, the proponents must obtain 150,000 signatures in six of Missouri’s nine Congressional districts by May 9.

The legislature is expected to reverse one of last year’s Medicaid cuts. Last year lawmakers ended health coverage for disabled workers and received much criticism for these cuts. The program had been abused with some individuals working as little as one hour a month qualifying for health benefits. But rather than reform the program the legislature simply eliminated it. This year legislative leaders vow to restore the program with new work requirements and more reasonable income and asset guidelines.