Gov. Otter: Look before leap on Medicaid expansion

Gov. Otter is sticking with his stance that a decision on the optional Medicaid expansion should be postponed until next year.

“Our position is still what the governor laid out in his State-of-the-State address,” said Press Secretary Jon Hanian.

Under the Affordable Care Act, more people could qualify for Medicaid services, but only if states accept a higher income limit for the program.

The federal government would pay 100 percent of the costs of the expansion for the first three years; the reimbursement rate would gradually reduce to 90 percent by 2020, with the state contributing a 10 percent match. The clock on the reimbursement rates begins Jan. 1.

Rep. Tom Loertscher, R-Iona, introduced legislation Thursday that would authorize the expansion this year, to take advantage of the higher reimbursement rate for the full three years.

In his State-of-the-State address, however, Otter noted other changes and improvements are needed in the Medicaid system.

“They include a greater focus on personal responsibility and steps for encouraging preventive measures and healthy behaviors,” he said. “I'm asking Director Armstrong to flesh out a plan for changing Idaho's system with an eye toward the potential costs, savings and economic impact. I hope to return in 2014 with specific proposals related to that.”

Otter created a working group last year to review the Medicaid expansion issue. The group meets again Monday.