Missouri Medicaid Expansion Sees Immediate Success
Missouri’s ACA Medicaid expansion is already seeing substantial growth in terms of health coverage enrollment and participation.
The state originally expanded Medicaid and Medicare at the height of the COVID-19 pandemic last summer. It wasn’t until October 1, 2021, with a retroactive apply date of July 1, 2021, that Medicaid expansion took effect.
According to healthinsurance.org, 17,000 Missourians have already applied for ACA Medicaid. The total number of Missouri residents expected to obtain Medicaid coverage as a result of the expansion is 275,000.
Missouri still operates on the federal HealthCare.gov platform and due to Biden’s American Rescue Plan, will receive an additional “$968 million in additional federal Medicaid funding over the next two years,” according to CNN. The additional funding should help the state assist residents with obtaining coverage as well as promote outreach efforts to further boost enrollment.
A wide variety of Missouri residents can qualify for Medicaid coverage, including low-income pregnant women, children, and blind individuals. Due to the state’s ACA Medicaid expansion, adults under the age of 65 with a household income less than 138% of the Federal Poverty Level can also now qualify for Medicaid coverage.
According to the Center on Budget and Policy Priorities, states that have expanded ACA Medicaid have greater access to care, health, and financial security. It looks as if Missouri is on track to join the other states in achieving greater success.
Medicaid expansion first began in 2014 under the ACA. The expansion allows states to offer residents more affordable coverage based on their income level rather than a disability. As a result, thousands more Americans have been able to qualify for the government-subsidized health program.
According to the Kaiser Family Foundation, a total of 39 states, including Washington D.C. have expanded Medicaid under the ACA. The remaining 12 holdout states appear to have no intention of expanding in the foreseeable future, even though it would provide over 2 million Americans the opportunity to obtain more affordable coverage.
Democrats in the House of Representatives are currently working out a proposal to combat the issue. Included in a recent $3.5 trillion package are provisions to introduce a federal program that would begin in 2025 and essentially expand Medicaid in the 12 holdout states.
Missouri’s ACA Medicaid expansion is a reminder of the ACA’s success in providing affordable coverage to Americans. While political discourse continues to flesh out Medicaid in the remaining regions of the country, employers should take note of the increasing support for the healthcare law.
Since Biden first took office, the ACA has received significant advancements. With open enrollment on the horizon for 2022, the landmark law is gearing up to have its strongest year yet.
All this to say that the Employer Mandate obligations for organizations are here to stay.
Under the ACA’s Employer Mandate, employers with 50 or more full-time employees and full-time equivalent employees, known as Applicable Large Employers (ALEs) must:
- Offer Minimum Essential Coverage (MEC) to at least 95% of their full-time employees (and their dependents) whereby such coverage meets Minimum Value (MV); and
- Ensure that the coverage for the full-time employee is affordable based on one of the IRS-approved methods for calculating affordability.
Failing to meet these requirements could result in 4980H penalty assessments from the IRS.
If you need assistance meeting your ACA compliance requirements, download the Employer’s Guide to Coding ACA Form 1095-C to ensure a successful 2021 ACA reporting season.
For information on ACA penalty amounts, affordability percentages, important filing deadlines, steps for responding to penalty notices, and best practices for minimizing IRS penalty risk, download the ACA 101 Toolkit.
