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Stimulus Plan Helps Fla. Medicaid

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By BILLY HOUSE and CATHERINE DOLINSKI cdolinski@tampatrib.com

bhouse@tampatrib.com

Published: January 23, 2009

WASHINGTON - Florida could get about $4.3 billion in added federal Medicaid funding this year under the $825 billion economic recovery package being crafted by President Barack Obama and congressional leaders, said Democratic U.S. Rep. Kathy Castor of Tampa.

Compared with other states, Florida will get one of the highest percentage increases, about 13 percent, in its Medicaid match rate, Castor said Thursday.

"This is a substantial shot in the arm for Florida's families and the economy," she said.

Castor is a member of the House Energy and Commerce Committee that is marking up, or writing, the economic recovery plan.

The Senate has not taken up the bill, but Castor said she is confident that this version, or one close to it, will be approved by both chambers since it is Obama's package and was crafted by the Democratic leaders of the House and Senate

Medicaid is the health insurance program that in Florida serves about 2.2 million low-income families and individuals, half of them children, as well as people with disabilities, pregnant women and those in nursing homes.

The $4.3 billion would reflect a boost in the current 55.4 percent rate at which the federal government matches what Florida spends on Medicaid.

The increase, to 67.8 percent, applies to Medicaid spending from October 2008 through 2009.

Florida's high unemployment rate, topping 7 percent, is a big reason the state is slated to receive such a large increase in federal Medicaid dollars.

Castor urged the Florida Legislature, which is poised to eliminate $3.5 billion from the state budget, not to proceed with a cut in health care spending that will reduce the federal match.

This month, lawmakers cut $195 million from the general revenue that Florida spends on its share of Medicaid expenses.

"They simply cannot continue to cut Medicaid," Castor said. "Especially when we will have, probably, the best matching rate that Florida has ever had."

She also urged lawmakers to re- instate two optional Medicaid programs that help the poor and chronically ill. The Legislature funded both programs through the end of the current fiscal year, but they will end unless lawmakers opt to restore them.

The federal economic recovery package also would pick up 65 percent of Cobra premiums people pay to maintain employer-sponsored health insurance after leaving a job or being laid off.

Castor said the federal package also would fully cover health care for people without access to Cobra through Medicaid.

The federal government temporarily will pick up the entire tab for that population, she said, if the state will make the effort to enroll them in the system.

"This infusion of dollars is absolutely vital to Florida families and Florida's economy," Castor said. "Health care investments create and preserve jobs in the state while ensuring that families receive affordable medical care."

Castor said experts characterize Medicaid spending as equally important for the economy as building roads and other infrastructure. "These moneys are spent right away on doctors and hospitals," she said. "It's a direct economic stimulus; it keeps people working."

Reporter Catherine Dolinski can be reached at (850) 222-8382. Reporter Billy House can be reached at (202) 662-7673.

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