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Coghill Bill Limits Threshold of "Poor"
HB 367 Preserves Benefits for Alaskans at 150 Percent of Poverty

(JUNEAU) - Saying it's unfair to make Alaska's working families subsidize health care for others living at twice the poverty rate, Rep. John Coghill Jr. (R-North Pole) today introduced House Bill 367, to lower the state Medicaid qualifying level to 150 percent of the federal poverty rate.

"The federal government has slowly been expanding its definition of who is considered poor, and I don't believe that we need to be providing free medical care to a 'poor' family of four earning almost $51,500, including Permanent Fund dividends," Coghill said. The cutoff line would be $23,310 for one person, $32,721 for a couple, and $42,131 for a three-person family, including dividends.

Adjusting the qualifying level for state Medicaid benefits from its current 200 percent to a more reasonable 150 percent, Coghill said, would save $27.3 million: $8.1 million in state general funds, and $19.2 million in federal funds. This money could be available to cover the costs of other health care programs that Alaska provides to the poor, such as Chronic and Acute Medical Assistance, or to any other state service.

"Pregnant women and children in Alaska who are truly needy will continue to receive the medical care they need under the "Denali KidCare" program," Coghill said. "But the program must be focused on those facing real hardships in obtaining food, shelter and medical care. Someone making twice the federal poverty rate may not be well-off, but they're not suffering as much as many others."

Medical benefits under the program would not be cut off precipitously, but would continue an additional six months in the case of children, and for up to two months past delivery date for expectant mothers, according to a state health department official. If HB 367 is approved, those qualifying at 200 percent of the poverty rate would be phased out over a period between October 2002 and June 2003. Alternative health insurance for Alaskans with a medical condition disqualifying them from conventional health care insurance is also available through the Alaska Comprehensive Insurance Association, a nonprofit created by the Legislature.

At a time when Alaska faces projected annual budget shortfalls ranging from $900 million to $1.2 billion, the state needs to consider whether it can afford to extend generous social services to more people than really need them, Coghill said.

HB 367 was referred to the Health, Education and Social Services Committee and the Finance committee.

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