Strickland: Ohio May Sue Over SCHIP If Request for Medicaid Plan Change Fails

The Ohio Health Policy Review reports that Gov. Ted Strickland (D) plans to avoid the impact of Bush's veto of the SCHIP expansion bill by applying for a change to Ohio's Medicaid plan that would authorize the extension of Medicaid eligibility contained in the recently passed state budget. If that fails, however, Ohio may join other states who are suing the federal government:

In response to the President's veto of the State Children's Health Insurance Program (SCHIP), Governor Ted Strickland said he doesn't believe the veto jeopardizes the Ohio expansion of SCHIP over the next two years because the state is pursuing a "Medicaid plan amendment to implement the expansion rather than doing it through Ohio's SCHIP program." (Source: "Governor, Others React to SCHIP Veto," The Hannah Report, Oct. 4, 2007.). The state's planned SCHIP expansion was included as part of the budget for the current biennium.

Strickland also said that should Congress fail to override the veto and Ohio fails to get its plan amendment approved by the federal Centers for Medicare and Medicaid (CMS), he would consider legal action. "I don't want to take that approach and hope it can be avoided," he said.

The Marietta Times had a story a few days ago with comments by State Sen. Joy Padgett (R-Coshocton), State Rep. Jennifer Garrison (D-Marietta), and Gov. Strickland, indicating that the fix described above is only a temporary solution from the perspective of funding the eligibility increase:

Additional funding for the [Ohio SCHIP] was included in Ohio’s new budget, taking the eligibility threshold from 200 percent of the federal poverty level to 300 percent. ...

“We are able to continue our program for an extended period of time but we will still need Congressional reauthorization at some point,” said State Sen. Joy Padgett, R-Coshocton. ...

“We don’t know what impact all of this will have in the future, but for now, Ohio’s program is in place and secure,” she said. ...

For State Rep. Jennifer Garrison, D-Marietta, the bottom line in Ohio is the children.

“I voted to support this in Ohio, and I will co-sponsor a resolution in the House urging Congress to override the veto on SCHIP,” Garrison said. ...

In Ohio, the current situation is better than in many states, Garrison said.

“Ohio is in the enviable position of funding SCHIP through the Medicaid budget,” she said. “There will be no cuts during the current budget cycle.” ...

“We set aside a portion to fund Medicaid up to 300 percent (of the federal poverty level) where parents buy in for their children’s health insurance between 200 and 300 percent,” she said.

But, the road ahead is murky. ...

Without reauthorization at some point, Strickland predicts shortfalls of $6.8 million in fiscal year 2008 and $98.6 million in 2009. That does not include children covered under the new 300 percent threshold.

“Increased federal funding, consistent with the federal budget resolution, will ensure that sufficient SCHIP dollars are available for all eligible children,” Strickland’s letter [urging Congressional support for expanding the program] said.

So, the eligibility increase in the budget seems safe in the short term, but apparently expanding SCHIP is necessary to keep Ohio's enhanced program going past the next few years.