Texas Governor Vetoes Bipartisan Medicaid Expansion Bill, ‘Shocking’ State Lawmakers

Texas Gov. Rick Perry (R) on June 17 vetoed a bill (SB 1156) that would have saved the state more than $416 million over the next five years and would have expanded Medicaid coverage -- a move that "angry" state lawmakers called an "insult to the working poor, the mentally ill and vulnerable Texas children," the Houston Chronicle reports. According to the governor's office, Perry "believed much of the bill's efficiency goals could be accomplished anyway" and "generally opposes" expanding health care "to which some people might then assume they are entitled." The bill would have required the state to ask the federal government for funds for basic health care, "much of which is now paid for solely with county tax dollars" (Hughes, Houston Chronicle, 6/18).By asking the federal government for additional assistance through waivers and other changes, the state expected to save money by supplanting state/county dollars with federal dollars. The state also expected to save funds due to births averted by a family planning waiver (SB 1156 Fiscal Note, 5/26). In addition, the legislation would have expanded primary and preventive care to Texas residents with HIV/AIDS, schizophrenia and bipolar disorder; "working poor" women; children "facing life in state hospitals"; and legal immigrants who have resided in Texas for at least five years. The bill also would have increased reimbursement rates for doctors who treat "high volumes" of Medicaid cases. Earlier this year, the state Senate passed the bill unanimously, and the state House passed the legislation on a "non-controversial" voice vote.

'Slap in the Face'?
A "riled" state Sen. Judith Zaffirini (D), who sponsored the bill, said, "The veto of SB 1156 is not only a slap in the face of the many, many people who worked to develop this bill, but it is also a slap in the face ... to the families of Texas that need Medicaid." She added, "Some people were asking, 'What was he thinking?' Others are asking, 'Was he thinking?'" Predicting that the veto will become a "major issue" and hurt Perry's upcoming gubernatorial campaign, Zaffirini said, "I believe he got bad advice, made a bad judgment and created a bad day for the people of Texas." The governor also vetoed HB 2807, sponsored by state Rep. Ann Kitchen (D) and state Sen. Gonzalo Barrientos (D), which would have "drawn in" more federal tax dollars to help low-income and elderly Texas residents purchase prescription drugs. Earlier this month however, Perry signed SB 43, which will "simplify" Medicaid enrollment and ensure that "hundreds of thousands" of uninsured children receive health care "to which they already are entitled" (Hughes, Houston Chronicle, 6/18).