Maryland Lawmakers To Consider Medicaid Expansion

Main Category: Medicare / Medicaid / SCHIP
Article Date: 26 Oct 2007 - 5:00 PDT

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The Maryland General Assembly during a special session that begins Monday will consider a proposal that would provide $500 million to extend Medicaid coverage to more than 100,000 uninsured residents, the Baltimore Sun reports. Under the proposal, the Medicaid income eligibility threshold for adults would be expanded from 40% of the federal poverty level to 116% of the poverty level and would offer subsidies to small businesses, according to legislative leaders (Smitherman, Baltimore Sun, 10/24).

Maryland Gov. Martin O'Malley (D) has proposed funding the plan by increasing the state sales tax rate from 5% to 6%, cutting the property tax by three cents per $100 in assessed value, doubling the cigarette tax to $2 per pack and other tax reforms, according to the Sun (Drew, Baltimore Sun, 10/24). He also has proposed legalizing slot machines to generate funds for health care programs.

O'Malley expects that the series of tax increases would generate $2 billion. The state by 2012 would contribute $250 million annually to expand coverage, with the rest coming from federal matching funds. Delegate Peter Hammen (D), chair of the state House Health and Government Operations Committee, and state Sen. Thomas Middleton (D), chair of the state Senate Finance Committee, said some of the funding would come from redirecting money from the state's uncompensated care fund.

O'Malley will present the health care package during the special session, which was called to address the state's projected $1.7 billion deficit. However, if "any piece of that package failed in the General Assembly, more money for health care could evaporate," the Sun reports. O'Malley said without the tax increases, he would be forced to propose budget cuts in education, health care and public safety (Smitherman, Baltimore Sun, 10/24).

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