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Will Louisiana’s Medicaid Expansion Be A Harbinger For Georgia?

Georgia Gov. Nathan Deal has rejected Medicaid expansion since he took office in 2011, but the state's deep-seated opposition is showing some small signs of cracks. (Davis Turner/Getty Images)

Louisiana and Georgia have many political similarities. Both states face significant health challenges affecting their populations. And until recently, both states had identical approaches to Medicaid expansion.

Georgia听Gov. Nathan Deal, a Republican, has rejected expansion since he took office in 2011, and GOP lawmakers have repeatedly backed him up. They point to concerns about the future cost of expansion, saying it would eventually put too much strain on the state budget.

But on Friday, Louisiana will become the 31st state — and only the third Southern state — to expand the government program, which is jointly financed by state and federal governments. Gov. John Bel Edwards, a Democrat elected last fall, on his second day in office reversed the course set by his predecessor, Republican Bobby Jindal, by signing an executive order that began the process. Already, have been signed up.

鈥淭his isn鈥檛 just about听expanding health care coverage and saving money,鈥欌 Edwards said earlier this month when addressing reporters at a seminar sponsored by the Kaiser Family Foundation. “We want听healthier people in Louisiana.鈥 (KHN is an editorially independent program of the foundation.)

And there are small signs of a crack in the opposition to expansion in Georgia.

Georgia state Sen. Renee Unterman (R-Buford), who chairs the Senate Health and听Human Services Committee, recently made听headlines calling for Georgia to 鈥渞e-examine鈥欌 the possibility of Medicaid听expansion, perhaps looking at a 鈥渨aiver鈥欌 plan similar to the Arkansas expansion program.

鈥淲e have to open that box and look just a听little bit and see what鈥檚 available,鈥 , the NPR affiliate in Atlanta. 鈥淗opefully, if you听draw down federal dollars, you can free up some of those state dollars. Right听now, we鈥檙e just pumping out state dollars to stay in the midst of the crisis.鈥

A task force created by the Georgia Chamber of Commerce is formulating proposals that would extend coverage to more of the state鈥檚 uninsured but not along the lines of a conventional Medicaid expansion.

Yet Georgia state Rep. Sharon Cooper of Marietta, the Republican chairwoman of the听Georgia House’s Health and Human Services Committee, told Modern Healthcare that she听and her colleagues will entertain the proposals, but added that she doesn’t听believe an expansion plan will solve the problem of access to care.

鈥淭he problem with expansion is, ‘Who is going to听treat these people?’ ” Cooper said. 鈥淲e don’t have the physicians, nurse听practitioners or physician assistants to care for them in rural areas of the听state.鈥

Since the beginning of听2013, five rural hospitals have closed in Georgia.

A Tale Of Two Southern States

puts Louisiana 50th among states — 10 spots behind Georgia. The听state has high rates of obesity, hypertension and diabetes, and a high听mortality rate from cancer. For Georgia, the rankings note its large number of low-birthweight babies.

Louisiana also has a听very high share of people living in poverty, but Georgia has a听larger percentage without health insurance (16 percent).

One key difference between听Georgia and Louisiana is the Peach State’s much stronger fiscal situation. Louisiana, where the energy industry is very important,听has been hit hard by a decline in oil prices.听Edwards inherited what he calls a record state deficit.

But ironically, that听deficit eased the road for expansion, officials say. 鈥淭he budget crisis was a听catalyst for the Legislature to come aboard,鈥 said Dr. Rebekah Gee, secretary听of the Louisiana Department of Health.

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Aretha Frison, of the New Orleans area, works at an animal hospital part time and battles depression. (Andy Miller/Georgia Health News)

A study found that the听expansion would produce net savings of $184 million for Louisiana, including in-state money paid to hospitals and moving some current Medicaid patients into a听better federal matching rate of 95 percent.

Part of Louisiana鈥檚 push to enroll new people in Medicaid听has come through a unique mailing to 105,000 food stamp recipients,听like Aretha Frison, of the New Orleans area, who works at an animal hospital part time and battles depression.

She said she 鈥渉ad been hitting a lot of brick walls鈥 when trying to get psychiatric care but now 鈥渋t seems like Medicaid is the golden ticket.鈥

About 180,000 other people听were 鈥樷檃uto-enrolled鈥欌 from a听previous听鈥渨aiver鈥欌 program that did not provide coverage听for hospital services or prescription drugs.

Help For Hospitals

Advocates for Medicaid expansion in Georgia often tout the expected benefits for the state鈥檚 hospitals, many of which are financially stressed. Though hospitals in听other states have reported substantial revenue gains as a result of听expansion, Louisiana鈥檚 complicated system of funding for hospitals may not听yield many clear winners.

Louisiana has had an听unusually heavy reliance on 鈥樷檇isproportionate share鈥欌 funding, which the state听pays out to those hospitals serving a large number of indigent or uninsured听patients.

While the giant Ochsner听Health System said Medicaid expansion would be slight improvement for the system financially, Baton听Rouge-based Our Lady of the Lake Hospital said expansion may bring a payment cut overall with the loss of disproportionate share funds.

But low-income听residents should benefit greatly.

More than half of the 4,000 medical patients at the New Orleans CrescentCare health center are expected to qualify for Medicaid under expansion, which may lead to better care options.

For example, Alicia Honomichl, a registered nurse there, said expansion听will help more people obtain PrEP, a medication that can prevent a person from getting HIV from an infected individual, whether through sexual contact or sharing of drug-injection equipment.

Dr. Peter DeBlieux, chief medical officer of听the brand-new University Medical Center New Orleans, said the Medicaid change is听鈥渆arth-shattering鈥欌 for his patients.

Patient access听to regular medications will be 鈥渓ow-hanging fruit鈥欌 that will come from听expansion, and 鈥淚 expect [cancer] screenings to skyrocket,鈥 he said.

This story was done in partnership with .

Related Topics

Medicaid States The Health Law Uninsured