Preserving health Care for Working Parents

Administration Proposal to Eliminate Parent Coverage

Because of the state's current fiscal crisis and Medicaid's anticipated growth, Governor Taft has proposed to cut parent Medicaid eligibility from 100% to 90% of the federal poverty level.  About 25,000 parents will lose coverage.  The projected savings are $37 million state GRF for the biennium.   Following are important points for consideration in evaluating this proposal.

*          The parent coverage expansion was implemented in July 2000.  Since that time tens of thousands of parents have benefited from coverage.

*          Eligibility levels are modest: 100% FPL = $16,090 for a family of three, or $1,341 a month.   Most work at jobs that pay from $6-9 per hour.

*          Parent coverage helps fulfill the promise of welfare reform, making it possible for parents to achieve economic stability in low wage jobs without benefits -- often the only jobs they can get.

*          Parent coverage helps maintain Ohio’s dramatically reduced welfare caseload, from 263,000 cases in 1992 to 88,000 cases today.  Ohio’s TANF caseload did not increase during the recession of the early 2000's, as it did during the early 1990's.  A family on TANF costs the state twice what Medicaid alone costs.

*          Parent coverage insures that working parents will be healthier, thereby enhancing their capacity to function effectively as parents.  Research shows that mothers whose mental health needs are met through coverage are able to meet their children’s behavioral health needs, while the children of mothers whose needs are unmet can suffer profound and lifelong behavioral health problems.

*          Parent coverage helps insure that children are enrolled in Healthy Start and receive health care on a timely basis.

*          Parent coverage benefits employers by increasing employees’ morale and productivity while reducing absenteeism and turnover.

*          Parent coverage benefits health care providers by reducing their uncompensated care burdens and unfair cost-shifting to other payers.

*          Parent coverage, like all Medicaid spending, benefits local economies through the economic multiplier effect, which includes the impact of federal matching funds.  Each state dollar spent in Ohio generates $3.15 in economic impact and benefit. 

Family Coverage Coalition Seeks to Preserve Parent Coverage 

The Ohio Family Coverage Coalition, a diverse group of provider and advocacy organizations supporting expanded family health care coverage, strongly opposes the Governor's proposal. The parent expansion has fulfilled every one of its objectives since its implementation. It has supported parents going to work. It has virtually stopped the return to welfare. It has helped to stabilize the low-wage workforce during a stubborn recession. And as a study currently being completed by Ohio State University School of Public Policy and Management demonstrates, it makes a substantial economic contribution to communities throughout Ohio with the economic multiplier benefit of matching federal funds.

Ohio's fiscal crisis is very real and there are no easy answers. All are asked to contribute to its solution. However, these working parents are being asked to contribute well beyond all others. Other adults are not losing complete eligibility, just coverage for certain services, albeit very important services - dental, vision, psychologist. It should be enough that these working parents lose coverage for these services along with all other adults. They should not lose coverage altogether.

Supporting working families should be one of the highest priorities for public policy in Ohio. The Family Coverage Coalition urges the General Assembly to preserve parent eligibility for health care up to 100% of the poverty level. 
 

For more information:  

Col Owens, Co-Chair, OFCC  513-362-2841; 

Cathy Levine, Co-Chair, OFCC   614-253-4340;