Wisconsin Gov. Scott Walker argued that his state's approach to Medicaid expansion is an innovative solution that could serve as a blueprint for other states. Under Wisconsin's program, individuals with incomes up to 100% of the federal poverty level are eligible for benefits. While he ended a limit on those up to 100% who could sign up for the program, he did it by eliminating others above 100%, telling them to seek out new coverage on the insurance exchanges instead.
“I didn't accept the false choices that often Washington tries to give you,” Walker said during a speech Friday in Washington at the conservative American Action Forum.
Walker is testing the waters for a presidential run. His appearance at last weekend's Iowa Freedom Summit was applauded by conservative pundits and activists. Earlier this week, he announced the formation of a political committee, Our American Revival, that will allow the two-term Republican governor to raise money, hire staff and travel the country while contemplating a 2016 bid.
Walker pointed out that his predecessor as Wisconsin's top executive, Democrat Jim Doyle, had expanded Medicaid eligibility to individuals with incomes up to 200% of the federal poverty level. But because there wasn't enough money to cover everyone, there was a waiting list to become eligible for benefits.
“We restored Medicaid to what it was intended to be, that is, to providing access to healthcare to people living in poverty,” Walker said. “For all those living above that, we transitioned (them) into the marketplace.”
Walker cited a 2014 Kaiser Family Foundation report, which showed that Wisconsin is the only state that didn't expand Medicaid eligibility to residents with incomes up to 138% of the poverty threshold yet doesn't have a coverage gap. That's when individuals in non-expansion states aren't eligible for Medicaid but also can't access subsidies to help pay for coverage through the exchanges.
But Walker's stance on Medicaid expansion also has drawn criticism. It's estimated that Wisconsin would have saved more than $200 million in the current biennium and provided free coverage to 87,000 low-income individuals if it had expanded Medicaid.
Walker also praised Rep. Paul Ryan (R-Wis.), the chair of the Ways and Means Committee, for proposing that Medicaid be transformed into something more akin to a block-grant program.
“What we do in Wisconsin is a lot different from New York or California or Texas or even Illinois,” Walker said. “Why not empower innovators at the local and state level to do the things that are in the best interests of their taxpayers instead of this one size fits all mentality?”
Follow Paul Demko on Twitter: @MHpdemko