Republican Governor of Florida Says State Wonft Expand Medicaid

Published: July 2, 2012 - New York Times

WASHINGTON — In another sign of resistance to President Obamafs health care overhaul, Gov. Rick Scott of Florida, a Republican, said Monday that his state would not expand its Medicaid program.

Florida is the largest state to say so firmly that it will take advantage of a new option granted by the Supreme Court decision on the health care law.

The 2010 law calls for a sweeping expansion of Medicaid, to add 17 million people to the rolls, accounting for half of all the uninsured people expected to gain coverage nationwide.

gFlorida will opt out of spending approximately $1.9 billion more taxpayer dollars required to implement a massive entitlement expansion of the Medicaid program,h said Mr. Scott, a former health care executive.

More than one-fifth of Florida residents — roughly 4 million of 19 million people — lack health insurance.

Mr. Scott also rejected another provision of the new federal law, saying Florida would not set up a health insurance exchange, or a regulated market where people can shop for coverage.

The governor acknowledged that for three years, from 2014 to 2016, the federal government would pay all the costs of covering people newly eligible for Medicaid. But, he said, gthe burden increasingly shifts to Florida taxpayers in future years.h

Mr. Scott said Medicaid was ggrowing three and a half times as fast as Floridafs general revenueh and was gobbling up money needed for education.

Obama administration officials said they were not worried by the rumblings among Republican officials in Florida and other states.

Obama aides predicted that all states would eventually expand Medicaid and set up exchanges when they realized the benefits.

gThe vast majority of states will come in,h Jacob J. Lew, the White House chief of staff, said Sunday on the ABC News program gThis Week.h gFor those few that are slow to come in, theyfre going to have to answer to people why theyfre turning this down and why theyfre letting people go without coverage.h

Congress required states to expand Medicaid to cover nonelderly people with incomes less than or equal to 133 percent of the federal poverty level (up to $25,390 for a family of three). But the Supreme Court said that the change was optional, and that the federal government could not penalize recalcitrant states by withholding money they receive under the existing Medicaid program.

Republicans in Congress are encouraging continued state opposition to the federal law, which was upheld last week by the Supreme Court.

A group of Republican lawmakers — 12 senators and 61 House members — said Monday that they had sent a letter to governors urging them not to set up insurance exchanges.

It now appears that the federal government could be running the exchanges in one-third to half of all states in 2014, far more than lawmakers assumed when they passed the law.

Gov. Nikki R. Haley of South Carolina, a Republican, said Monday that she would not set up an exchange because gstates have little meaningful flexibility under the Obama administrationfs concept of state-based exchanges.h

A Texas official welcomed the Supreme Court decision, saying it provided an opportunity for states to gpush back againsth the expansion of Medicaid.

gMedicaid already consumes a quarter of the state budget in Texas, and enrollment and costs would mushroom under the Affordable Care Act,h said the official, Thomas M. Suehs, the executive commissioner of health and human services.

Miriam E. Harmatz, a lawyer at Florida Legal Services, said Mr. Scottfs action was ga terrible decision for our clients, who would have benefited from the expansion of Medicaid, and a shortsighted decision for the economy of the state,h which would have benefited from an infusion of federal Medicaid money into the health care industry.

Bruce Rueben, president of the Florida Hospital Association, said he hoped Mr. Scott would reconsider and reverse his decision on Medicaid.

Deborah S. Bachrach, a former Medicaid director in New York, said, gMany states will accept the Medicaid expansion, given that the federal government is paying all the costs in the short term and most of the costs in the long term.h

A version of this article appeared in print on July 3, 2012, on page A10 of the New York edition with the headline: Republican Governor Of Florida Says State Wonft Expand Medicaid.