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Legislators Revisit 2005
Medicaid Decision
T he Jefferson City News Tribune is
reporting that Missouri lawmakers are considering a reversal of some
Medicaid cuts that last year impacted people with disabilities who are
working.
In an Associated Press article by David A. Lieb,
the Tribune reported that lawmakers are poised to re-enact a
reduced version of a program they cut in 2005.
Last year, many Missouri legislators repealed a
Medicaid health care program for the working disabled, denouncing
waste, fraud and abuse. Now they may be indicating the cuts went too
far.
Endorsed by a joint House and Senate committee
created to recommend reforms to the Medicaid program, a bill by Rep.
Chuck Portwood, R-Ballwin, would start a new version of the repealed
program called Medical Assistance for Workers with Disabilities, or
MAWD. Portwood says more than 40 legislators already have signed on as
sponsors, and he has predicted the bill could pass the House within
the first 30 days of the session.
The momentum for the reversal appears to come
partly from the 7,250 Missourians with developmental disabilities who
are employed in 93 sheltered workshops around the state. The article
noted they are paid below minimum wage to perform tasks such as
packaging products for other companies. Many rely on Medicaid for
their health care.
The Department of Social Services in 2004 estimated
that nearly 10 percent of the approximately 17,000 people on the MAWD
program were employed in sheltered workshops. The MAWD program allowed
people with disabilities who have incomes more than 2.5 times the
normal cutoff to enroll in Medicaid, so long as they worked a minimal
amount each month.
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Unfortunately, the elimination of MAWD represented
a triple blow against those people with disabilities who hold jobs,
causing some to lose more than half of their already small paychecks.
When legislators eliminated the MAWD program, they also lowered the
income eligibility threshold to qualify for traditional Medicaid and
eliminated Medicaid coverage for dental exams and eyeglasses for most
adults.
Less obvious, many of these Missourians with
disabilities who hold jobs survive by combining multiple support
programs with their paychecks. Many typically use Social Security
payments, Medicaid and their pay, the latter sometimes 60 cents to $1
an hour. With many battling illnesses that often cluster around those
with mental disabilities, the Medicaid loss might take one-third or
more of their after-tax income.
The Tribune article reported that at the
request of Gov. Matt Blunt’s office, the Department of Elementary and
Secondary Education sent e-mail to sheltered workshops in December to
survey the effects of the Medicaid cuts. Responses were returned by 36
workshops representing 3,185 employees. Of those, 18 employees had
quit working because of the Medicaid cuts and 13 were working fewer
hours so they could qualify for traditional Medicaid at lower income
levels.
When it was created in 2001, the MAWD program was
projected to cover 441 people at a cost of $7 million in state and
federal funds. In the 2005 fiscal year, it covered 16,987 people at a
cost of about $250 million, according to the Department of Social
Services. Backers believe the slimmed-down program should cost less
then $10 million. It would set a lower income cutoff to qualify and
charge all participants premiums and application fees.
(Reprinted from the Missouri Association of Sheltered Workshop
Managers Newsletter, Winter 2006)
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