Kowall Backs Dems, Governor in Bid to Expand Medicaid

This story was reported and written by Daniel Lai and Joni Hubred-Golden.

LANSING — After hours of political debate, the state Senate approved a plan late Tuesday to expand Medicaid health care coverage to 470,000 low-income Michigan residents.

Tuesday's 20-18 vote makes Michigan the 25th state in the country to move forward with Medicaid expansion as part of the federal government's Affordable Care Act. Among the eight Republicans who joined with Democrats to pass the bill was Sen. Mike Kowall who represents West Bloomfield Township in the 15th District,

Kowall told Digital First Media Wednesday that tea party groups who opposed the expansion and the Affordable Care Act, were probably "not real happy with me at the moment. We vote with about 90 percent of the time. Periodically, we just don't agree."

"The Senate should be commended for approving the Healthy Michigan plan, which will make a difference in the lives of nearly half a million Michiganders along with saving tax dollars and boosting our economy," Gov. Rick Snyder said in a written statement following the vote.

The state House of Representatives approved a healthcare expansion plan in June. It is not expected to vote on the Senate's plan until after Labor Day. Because waivers requested by Michigan are expected to take up to 120 days for approval by the federal Centers for Medicare and Medicaid Services, Michigan will miss the Jan. 1, 2014 implementation date. The delay could cost taxpayers $7 million a day in lost funding because the federal money would be sent to other states.

The Medicaid expansion extends benefits to people who fall within 133 percent of the federal poverty level. Benefits will be fully compensated by the federal government through 2017. The federal contribution would drop to 90 percent by 2020.

The bill requires recipients to contribute 5 percent of their out-of-pocket medical costs. After 48 months, the co-pay would increase to 7 percent or the recipient could purchase insurance on the health care exchange. If a person is determined to be “medically frail” — defined as having a chronic disease, mental illness or are unable to complete the daily tasks of life — they would remain at the 5 percent co-pay.

"The Healthy Michigan plan emphasizes personal responsibility. Those covered by the plan will be required to share in the costs through premiums. There also will be incentives for them to take responsibility for their lifestyle choices and to maintain or improve their health," Snyder said.