The Ohio Supreme Court on Thursday expedited the 1851 Center for Constitutional Law’s challenge against the federally funded Medicaid expansion, which Republican Gov. John Kasich pushed through the Controlling Board, a seven-member legislative panel, despite resistance from the Ohio legislature.
The case will decide whether Kasich was constitutionally allowed to bypass the legislature to expand Medicaid eligibility to more low-income Ohioans. The 1851 Center says the Controlling Board isn’t allowed to go against the will of the legislature. The Kasich administration argues the Controlling Board can unilaterally accept federal funds.
With the case now expedited, both sides will submit their arguments on the merits of the case to the state’s highest court by Dec. 1.
Kasich tried for most of 2013 to get the expansion approved by the Ohio House and Senate, but he couldn’t convince Republican legislators, who control both chambers, to approve the plan.
But instead of accepting defeat, Kasich asked the Controlling Board to take up federal funds for the expansion.
The legal complaint was filed on Oct. 22 on behalf of Republican State Reps. Matt Lynch, Ron Young, Andy Thompson, Ron Maag, John Becker and Ron Hood, Cleveland Right to Life and Right to Life of Greater Cincinnati.
Kasich, in a rare alliance with Democrats, says the Medicaid expansion is necessary to insure more low-income Ohioans and obtain federal Obamacare dollars that would go to other states if Ohio declined the expansion.
But Republican legislators say they’re concerned about the government’s involvement in the health care system and whether the federal government can afford to pay for the Medicaid expansion.
Under Obamacare, states are asked to expand Medicaid eligibility to reach anyone up to 138 percent of the federal poverty level, or individuals with an annual income of $15,856.20 or less. If states accept, the federal government will pay for the entire expansion through fiscal year 2016 then gradually phase down its payments to 90 percent of the expansion. In comparison, the Kaiser Family Foundation found the federal government paid for nearly 64 percent of Ohio’s Medicaid program in fiscal year 2013.
The expansion would fill a so-called “coverage gap” under Obamacare and Ohio law. Without it, parents with incomes between 90 percent and 100 percent of the federal poverty level and childless adults with incomes below 100 percent of the federal poverty level won’t qualify for either Obamacare’s tax credits or Medicaid.
The Health Policy Institute of Ohio (HPIO) previously found the expansion would insure between 300,000 and 400,000 Ohioans through fiscal year 2015. If the expansion is approved beyond that, HPIO says it would generate $1.8 billion for Ohio and insure nearly half a million Ohioans over the next decade.
If the Ohio Supreme Court upholds the Controlling Board’s decision, the Medicaid expansion will go into effect in 2014 and cost the federal government nearly $2.6 billion, according to the Ohio Department of Medicaid.