Senate Bill 130 by Sen. Heather Cloud aims to reduce state spending on Medicaid by implementing enhanced and more frequent eligibility checks. Critics counter that the sweeping proposal would kick people out of the health care program because of paperwork or other bureaucratic hurdles, and not generate a windfall of savings for Louisiana. WWNO’s Drew Hawkins reports:
[Senior policy advisor for Medicaid at Invest in Louisiana, Courtney] Foster said most of the savings would come from procedural denials, not necessarily policy improvements. And the cost-savings associated with the bill are “questionable,” she said, because most of the time, when someone loses Medicaid coverage, they don’t realize it until the next time they go to the doctor or emergency room. That could mean people who are disenrolled from Medicaid for procedural reasons, but do qualify for coverage, may simply get back on Medicaid.
There are also new costs associated with the implementation of SB 130:
It also calls for creating 50 new positions with salaries and benefits, which Foster said adds additional layers of bureaucracy dedicated to “kicking people off of Medicaid.” It’s also important to remember, Foster said, that Medicaid beneficiaries are not the ones getting paid. The program gives low-income people access to consistent health care coverage. “It’s people that are showing up to the doctor and then maybe the doctor should be getting paid from one source versus another,” Foster said. “But the patient themselves is just going to the doctor.”
Increasing the number of fortified roofs
State lawmakers are trying to encourage the construction of more fortified roofs, which have been hailed as a key part of the solution to Louisiana’s property insurance crisis. The Times-Picayune | Baton Rouge Advocate’s Sam Karlin reports on some of the proposals, including a measure to provide homeowners who install a fortified roof with an income tax credit worth up to $10,000:
The move would represent a significantly better incentive than the current $5,000 tax deduction, though (Sen. Kirk) Talbot’s bill would be capped at $10 million a year across the state, limiting the number of people who can benefit. The cap, put in place over budget concerns, means 1,000 homeowners will be able to get the tax benefit outside the grant program. More could qualify if some roofs on smaller homes cost less than $10,000.
State leaders are also considering the creation of a dedicated funding stream for the Louisiana Fortify Homes Program:
In the meantime, the Legislature appears likely to keep the same level of funding as last year for fortified roof grants, $15 million. The Legislature sent $30 million to the program in 2023, enough for 3,000 homeowners. (Insurance Commissioner Tim) Temple is asking lawmakers to dedicate $15 million a year in insurance premium taxes and fees to the fortified roof grant program, which has seen demand far outstrip available funding. Until now, lawmakers have been sending money from the state budget to fund it.
The Legislature recently rejected a bill by Sen. Royce Duplessis to mandate minimum discounts for homeowners who install a fortified roof.
Medicaid cuts would devastate Louisiana
The sprawling budget and tax bill that cleared the U.S. House last week could take health insurance away from millions of Americans. U.S. Rep. Cleo Fields, writing in a guest column for the Times-Picayune | Baton Rouge Advocate, notes the Congressional Budget Office estimates that 8.6 million Americans would lose Medicaid coverage if the measure becomes law:
This number is profoundly troubling and will have a catastrophic impact on the state of Louisiana, where one out of every three people is currently enrolled in Medicaid. That’s over 1.6 million people. This group includes over half of all the state’s children, two-thirds of mothers giving birth and their newborn babies, and three-quarters of people living in nursing homes. … In addition to providing crucial support to those in dire need, Medicaid also represents a significant source of federal funding to Louisiana, equaling nearly $15 billion in 2024 alone. This money constitutes over 35% of the state’s total annual budget.
Health insurance is unaffordable and health care costs are out of reach for too many families:
The harsh reality of life in Louisiana is that many of our friends and neighbors rely on Medicaid to survive. They do not rely on Medicaid because they are lazy or do not want to work. They rely on Medicaid because they work hard and yet are still unable to earn enough to afford health insurance. Let me be clear, Medicaid is not a handout. It’s a bridge to stability and health — a basic right in a nation as wealthy and prosperous as ours.
Gumbo starts with clean water
Every Louisianan, regardless of ZIP code, has a right to clean water when they turn on the tap. But decades of disinvestment have left water systems around the state sorely in need of major repairs and upgrades, while residents deal with discolored, malodorous water and boil advisories. The Times-Picayune | Baton Rouge Advocate’s Faimon Roberts writes that lawmakers can make a downpayment on fixing the problem using the new tax revenue recognized last week by the Revenue Estimating Conference – starting with the district of Senate Finance Committee Chairman Glen Womack:
I’m not sure how Womack makes his gumbo, but I am pretty sure he can’t do it without one key ingredient: water. I’m also guessing that he doesn’t make it in Monterey, the tiny community in his district that has been suffering through months of water problems so bad that some residents filed suit earlier this year against the Monterey Rural Water System and the company that operates it, JCP Management. Womack was president and chairman of the board of JCP in 2019 when he announced his run for Senate, according to media reports. His name, along with a JCP email address, is listed as a “Designated Operator” of the Monterey system in the state’s water system database. Oh, the irony.
Number of the Day
3.2 million – Number of people who would lose federal food assistance benefits under a budget proposal that’s currently moving through Congress. (Source: Congressional Budget Office)