Why wait to implement Medicaid Expansion until April 1, 2014??
So the Michigan Legislature has finally approved the expansion of Medicaid. As an optional part of Health Care Reform, sometime known as Obamacare, the Legislature has joined 24 other states in expanding Medicaid.
What this does is allow anyone earning up to 133% of the Federal Poverty Level to apply for Medicaid. This will allow an additional 320,000 Michigan residents to get much needed health coverage in 2014, and up to 470,000 by 2020.
So while our legislature passed this, they did not give it “immediate effect”, meaning that this will not take effect until April 1, 2014. What could possibly be the reason behind this. The new Health Care Reform act REQUIRES Americans to have health insurance by January 1, 2014, or pay a penalty. That penalty for the first year is $95 for singles and up to $285 for a family. So while these folks will be getting the coverage on April 1, they miss the January 1 date, and will be subject to the penalty.
Michigan is also missing out on $7 million/day to implement the plan, meaning that we will be losing out on over $600 million.
This makes no sense whatsoever. These folks will be getting coverage on April 1. Why not give it to them on January 1?? This is politics as usual in Lansing. Enough already. Since you voted to make them eligible for Medicaid, at least make it available on January 1 so they can avoid the Federal Penalty.