Jindal rejects stimulus health aid

• By MARSHA SHULER
• Advocate Capitol News Bureau
• Published: Apr 1, 2009 - Page: 1A

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Gov. Bobby Jindal nixed two health-care program expansions available through the federal “stimulus” package, the state’s health chief said Tuesday.

State Department of Health and Hospitals Secretary Alan Levine said the two federal stimulus program provisions would require additional state funding at a time when the state is facing a $1.3 billion downturn in revenue to fuel the state budget.

“There’s a logical argument for not doing expansion while at the same time we are cutting so much and facing an $800 million cliff” when other federal stimulus dollars for health care go away, Levine said.

The two program expansions could cost the state in excess of $20 million in extra health-care funding over the next two years, Levine estimated.

It is the second time the Jindal administration has opted not to take advantage of special federal authority in the stimulus bill. Earlier, Jindal rejected $98 million in federal unemployment funds that would have allowed more people to get benefits.

The governor has said accepting the unemployment money would lock the state into continuing the expanded aid and result in higher costs for businesses.

Levine advised legislative leaders of the decision to exclude the program expansions for the poor and uninsured from the proposed budget for the fiscal year that begins July 1.

Unfunded are:

• Expansion of a program that provides temporary government health insurance to the families of those who leave welfare for work.
• A temporary increase in the state’s allotment of funds for the care of the uninsured.

Senate Finance Committee chairman Sen. Mike Michot, R-Lafayette, said Tuesday he had not yet seen Levine’s letter. However, Michot said “I known Alan and certainly trust his judgment on this.”

The “stimulus” legislation would allow states to expand Transitional Medical Assistance. The TMA program provides up to a year of Medicaid coverage to the family of individuals who leave the welfare program for work. Under the option, states could extend the coverage to 18 months.

Today, the program offers the benefit to those who have been on cash assistance for at least three months. Under the economic recovery legislation, the insurance would be available to those who received welfare benefits for less than three months.

“The issue really isn’t the policy as much as the cost,” Levine said. He said it would require $4.5 million in additional state funding to match federal funds over the next two budget years — $2.25 million each year.