House Committee Approves Bill to Eliminate Medicaid

March 31, 2005, JEFFERSON CITY, MO – The House Special Committee on General Laws voted “do pass” on SB 539 which makes sweeping changes to various health care and social services programs and eliminates the current Medicaid program by June 30, 2008.

More than 150 people attended the hearing Wednesday, March 30 th. Senator Chuck Purgason (R-Caulfield) is the sponsor of the bill. SB 539 will give the state General Assembly authority to cut funds to the state’s Medicaid health care program. The current standard for Medicaid eligibility of 75 percent of the federal poverty level would be cut to 30 percent. This would mean that a mother with two children, earning as little as $4,705 annually would no longer qualify for Medicaid coverage.

SB 539 has been fast-tracked by the Senate and the House. In less than one month the bill was introduced in the Senate, referred to the Senate Committee on Veteran’s Affairs and General Laws, passed out of committee, debated and passed in the senate. The bill then went to the House of Representatives where within 24 hours it was referred to committee and voted “do pass” out of committee.

While testimony was heard for four and a half hours, it was apparent that five of the eight committee members had already made their decision to vote in favor of the bill. Rep. Brad Roark (R-Springfield), chairman of the committee and Rep. Brian Yates (R-Lee’s Summit) aggressively questioned anyone suggesting that there were alternatives to cutting funds to the state Medicaid program. Rep. Yates stated that the Missouri constitution required that they pass a balanced budget and that SB 539 was the only way to ensure that this happen.

When it was suggested that the General Assembly consider a one-cent statewide tax increase on tobacco and alcohol, Rep. Yates insisted that Missouri voters would not approve any tax increase. It was also suggested that the Missouri government consider legislation to close corporate tax loopholes, require Medicaid recipients to pay a small monthly premium for coverage and a doctor or hospital visit co-pay. All of these initiatives were shot down by committee members as “too little, too late,” and could not be considered for this year.

At the end of the hearing SB 539 was voted “do pass”. Rep. Brad Roark (R-Springfield), Rep. Jack Goodman (R-Mt. Vernon), Rep. Steve Hunter (R-Joplin), Rep Allen Icet (R-Wildwood), and Rep. Brian Yates (R-Lee’s Summit) voted in favor of the bill. The three Representatives who voted against SB 539 were Rep. John Bowman (D-Normandy), Rep. Bruce Darrough (D-Florissant), and Rep. James Wharton (D-Trenton).