March 31, 2009

Leading business group endorses Gov. Nixon's proposal to expand health coverage to 35,000 Missouri parents - at no cost to state taxpayers

Leading business group endorses Gov. Nixon's proposal to expand health coverage to 35,000 Missouri parents - at no cost to state taxpayers

ST. LOUIS - During a visit to the Boeing Corporation in St. Louis, Gov. Jay Nixon today announced that Associated Industries of Missouri, a major organization that has represented the interests of businesses and companies across the state for 90 years, has endorsed the Governor's agreement with the Missouri Hospital Association to provide health care coverage to nearly 35,000 Missouri parents - at no cost to state taxpayers. Leaders with AIM cited the impact the plan would have on driving down the cost of coverage for employers and families and its potential to spark economic growth as key reasons for the endorsement.

Under an agreement spearheaded by Gov. Nixon and announced just weeks ago, the Missouri Hospital Association will voluntarily contribute an additional $52.5 million a year to provide health care to parents in Missouri through MO HealthNet, the state's Medicaid program; these dollars will come from the funds Missouri hospitals currently receive for providing uncompensated care to uninsured patients. This investment by the MHA would allow the state to draw down about $93 million in additional health care matching funds from the federal government. Together, these funds would provide coverage for an additional 34,800 parents in Missouri.

Currently, Missouri parents must make less than about 20 percent of the federal poverty level to be eligible for coverage under the state program. To take advantage of this landmark opportunity, the Missouri General Assembly would need to increase the eligibility threshold to 50 percent of the federal poverty level in the Fiscal Year 2010 budget. This is the only legislative action required to provide health care to these parents under this agreement because no taxpayer General Revenue dollars are needed.

Today's announcement by AIM signals strong support for the proposal from Missouri's business community. For 90 years, AIM has served as the voice of Missouri business, representing major corporations and employers across a variety of industries and all around the state.

"Uninsured Missourians are placing a tremendous burden on our state's health care system and driving up health care costs for Missouri businesses, families and individuals," said Ray McCarty, president of Associated Industries of Missouri. "By reducing the number of uninsured Missourians, we'll lower the cost of health care for businesses and families, make it easier for employers to expand or relocate in the state, and move our economy forward. Associated Industries of Missouri applauds Gov. Nixon and the Missouri Hospital Association for reaching this important agreement, and we look forward to working with the Governor and the legislature to implement this plan to make health care more affordable and accessible for all Missourians - at no cost to state taxpayers."

"During these difficult economic times, business leaders, government officials and health care providers must work together to drive down the costs of coverage for all Missourians and reduce the number of uninsured," Gov. Nixon said. "This innovative agreement will pump more than $145 million directly into our health care system to provide care and create and save jobs - at no cost to Missouri taxpayers. I'm pleased to have the support of Missouri's business leaders on this incredibly important issue, and I know we'll work closely together in the coming weeks to ensure that the legislature takes urgent action to cover more Missouri parents and drive down the cost of coverage for employers and families. This is a landmark economic opportunity Missouri simply can't afford to miss."

Under this agreement, health care eligibility for Missouri parents would change as follows:

For a family of this size:	The current eligibility level is:	Under Gov. Nixon’s agreement, the eligibility level would become:
A single mother with two children	About 20 percent of the federal poverty level, or about $3,700 a year	50 percent of the federal poverty level, or about $9,155 a year
A family of four (two parents and two children)	About 20 percent of the federal poverty level, or about $4,410 a year	50 percent of the federal poverty level, or about $11,025

According to the 2008 “Cover Missouri” report by the Missouri Foundation for Health, more than 720,000 Missourians currently are living without health insurance, placing a considerable burden on Missouri's hospitals and emergency rooms. The costs of caring for these uninsured Missourians are passed along to individual policyholders and employers that provide health care in the form of higher premiums and co-pays. Based on data studied prior to the 2005 health care cuts, Missouri families were paying between $110 and $291 more a year in premiums because of the cost of providing care for the uninsured. Estimates made before the 2005 cuts predicted that in 2010, Missourians would be paying an additional $225 to $609 a year to provide care to the uninsured. Following the 2005 cuts, however, the number of uninsured Missourians rose significantly, so those initial estimates are likely lower than the actual premium increase Missouri families will see by 2010 without action to reduce the number of uninsured individuals in the state.