Missouri Catholic Conference Hails Gov. Blunt’s “Missouri Insure” Program

September 20, 2007, JEFFERSON CITY, MO – The Missouri Catholic Conference is hailing Governor Matt Blunt’s announcement on September 18, 2007 that he will restore publicly funded health coverage for lower income working parents who lost their coverage due to the 2005 Medicaid cuts.

The MCC’s Assistant Director, Mike Hoey, commended Governor Blunt for his decision. “This is a major step toward ensuring that everyone who works has access to health coverage, he said.

Due to the 2005 Medicaid cuts, parents cannot make more than $292 a month to qualify for Medicaid health coverage. An estimated 74,000 parents – all with incomes well below the federal poverty level – lost health coverage in 2005. The Missouri Catholic bishops voiced strong opposition to the Medicaid cuts, stating that “Access to health care is a basic human right.”

The new initiative does not restore Medicaid but creates a new program called “Missouri Insure.” Initially, over 54,000 individuals will be eligible for health coverage, but in time coverage could be offered to over 131,000 people.

“By whatever name you call it, this is a big step forward,” Hoey said. “Since 2005 we have been imploring the legislature and the Governor to reconsider the plight of the working poor. Governor Blunt’s decision to provide health coverage for these families is one way our state will now reward work and respect the dignity of workers.”

Individuals with incomes below the federal poverty level will be eligible for health coverage. They will have to make co-pays for medical services but not monthly premiums. No legislative approval is required to implement this phase of the new plan but a sign off by the federal government will be needed to draw down federal matching dollars.

In time, the Blunt administration hopes to expand the program to include those with incomes between 100% and 185% of the federal poverty level. These individuals would pay monthly premiums on a sliding scale based on their income.

The insurance benefits will be offered by a private insurance company under contract with the state of Missouri. It will include coverage for doctor visits, hospitalization, emergency room care, mental health services and durable medical equipment.

Governor Blunt’s action comes in the wake of new U.S. Census Bureau numbers reporting that the number of uninsured Missourians rose by an estimated 104,000 between 2005 and 2006. While nationally the uninsured rose by 5% during this period, it rose by 16% in Missouri. In total 772,000 Missourians lack health coverage.

In addition to the Medicaid cuts, the ranks of the uninsured have risen because fewer employers are offering health benefits for their employees. Those firms offering health benefits is down from 69% in 2000 to 60% in 2007, according to a recent report by the Kaiser Family Foundation. Small firms with less than ten workers are the least likely to offer health benefits. Only 45% of these firms offer benefits. The report also notes that employers are requiring employees to pick up more of the cost of the premiums. Worker contributions for family health coverage now average $3,281 annually.

Hoey said the lack of available employer sponsored health coverage is a problem that requires a public policy response. “The private market by itself is simply not addressing this problem. Governor Blunt’s initiative is therefore very good news for Missouri’s working poor.”