Louisiana Gov. Jindal Rejects Two Health Care Program Expansions Available Through Federal Economic Stimulus

Louisiana Gov. Bobby Jindal (R) plans to reject two health care program expansions available through the federal economic stimulus package because accepting the money would require additional state funding at a time when Louisiana faces budget problems, according to Department of Health and Hospitals Secretary Alan Levine, the New Orleans Times-Picayune reports (Moller/Scott, New Orleans Times-Picayune, 4/1). Jindal already has rejected $98 million from the stimulus package in federal unemployment funds that would have allowed more residents to receive benefits.

The funding would have allowed the state to extend from one year to 18 months coverage under the Transitional Medical Assistance program, which provides Medicaid coverage to families of those who leave welfare to work (Shuler, Baton Rouge Advocate, 4/1). The funds also would raise the cap on the amount of "disproportionate share" money the state can draw down from the federal government by about $58 million next year (New Orleans Times-Picayune, 4/1). Levine said the state would first need to find about $50 million to meet the current $731.9 million cap and then would have to come up with $17 million over the next two years to draw down matching funds.

Overall, Levine said, the two expansions could cost the state more than $20 million in extra health care funding over the next two years. Levine said, "There's a logical argument for not doing expansion while at the same time we are cutting so much and facing an $800 million cliff" when the stimulus funding runs out. He added that the option for the state to accept the expansion is available if it is needed in the future (Shuler, Baton Rouge Advocate, 4/1).