• Forecast
  • News Tip
  • Categories
Temperature Precipitation
Estimated read time
3m 26s

Parnell rejects Medicaid expansion in Alaska

By KTVA Alaska 1:06 AM November 15, 2013

Decision opts out of billions in federal aid that state report says would have covered 43,000 uninsured Alaskans

ANCHORAGE – Governor Sean Parnell on Friday rejected an expansion of Medicaid in Alaska, forgoing billions of dollars in federal aid through 2020 that would have insured more than 43,000 Alaskans.

Calling the existing Medicaid program “unsustainable,” Parnell pointed to a state-commissioned report by the Lewin Group that looked at the state’s costs through 2020 under two scenarios: one that expanded Medicaid, and one that didn’t.

Both scenarios took into account changes to health laws that will come as part of the Affordable Care Act, known as Obamacare.

“I believe a costly Medicaid expansion, especially on top of the broken Obamacare system, is a hot mess,” Parnell said.

The expansion of the program would cost the state between $198.2 and $305.7 million through 2020; federal funds would have contributed between $2.1 and $3.7 billion within that same period.

“Baseline” estimates in the report suggest 43,316 Alaskans would be covered by expansion; assuming full enrollment by eligible Alaskans, that number would jump to 56,364.

“All those federal dollars are really enticing. They really are,” Parnell said. “But they’re not free. They’re paid for by debt and printing more money. They’re paid for by our kids and grandkids. And they also come with the price of being more financially dependent on the federal government than we are today.”

“It is not my intention to create an economy here that revolves around federal dependence,” he added.

Not expanding the program, the report found, would cost Alaska about $39.9 million through 2020, insuring an estimated 779 uninsured Alaskans. The report noted that, should the state not expand Medicaid, “about 19,900 individuals will remain uninsured who would have otherwise gained coverage under Medicaid expansion.”

Rather than expand, Parnell said the solution is reform. To that end, he’s creating a task force to examine the state’s current system and bring its costs under control. The Medicaid Reform Advisory Group—to be made up of senators, house representatives, three appointees and a chairman to be named by the governor—will deliver their report within the year.

Several groups, including the Anchorage Chamber of Commerce and the Alaska Native Tribal Health Consortium, had supported the expansion. The governor’s announcement left many unhappy.

“This is not a good time to be a low-income, low-wage worker in Alaska,” said Dahna Graham with Anchorage Faith & Action Congregations Together, a faith-based group of 15 congregations in the city that had supported broadening Medicaid in the state.

She and other AFACT members sang and prayed over lit candles outside the Atwood building in downtown Anchorage as the governor made his announcement today. Saying they were “shocked” and “heartbroken” by the governor’s decision, she said it would ultimately hurt those who can’t afford insurance the most.

“They have nowhere to go, no insurance to buy,” Graham said. “They’ll just have to pray they don’t get sick. We’re sure praying for them.”

Graham said she was most upset about the lack of public process on the decision.

“We haven’t been able to have any public meetings on this,” she said. “We’ve had no access to [the state’s report].” The report is dated April 12, but Parnell said during his announcement that he first saw the report two weeks ago.

Also unhappy about the governor’s decision: Alaska’s democratic lawmakers. Senator Bill Wielechowski said he had been trying to obtain a copy of the state’s report for months, to no avail. He said he’s disappointed that Alaskans won’t be able to take advantage of the federal aid.

“Our tax dollars are going back to D.C., and in exchange we would be getting 43,300 Alaskans insured,” he said. “We are now turning those tax dollars over, and letting them be used so people in California, people in New York, people in Kentucky, other states around the country, to insure their residents.”

Wielechowski said he and other state lawmakers plan to push legislation in the upcoming legislative session in Juneau that would ensure Medicaid’s expansion in Alaska, provided the federal government pays its promised 90 percent of the program’s cost.

Latest Stories

  • News

    Crash shuts down Seward Hwy near Portage Glacier Road

    by KTVA CBS 11 News on May 27, 23:37

    The Seward Highway is completely closed in both directions at mile 76, according to an alert sent out by the Anchorage Police Department at around 11:30 p.m. Saturday. The location is just south Portage Glacier Road, near the Placer River. SEWARD HIGHWAY: APDAK: Seward Highway at mile 76 is shut down in both directions due […]

  • News

    Jet owned by Elvis sold for $430,000 at auction

    by Associated Press on May 27, 19:09

    ALBUQUERQUE, N.M. (AP) – A private jet once owned by Elvis Presley has been auctioned after sitting on a runway in New Mexico for 35 years. GWS Auctions Inc. says the plane sold for $430,000 on Saturday at a California event featuring celebrity memorabilia. The auction house says Elvis designed the interior that has gold-tone […]

  • Politics

    Judge dismisses lawsuit against Clinton by Benghazi families

    by Associated Press on May 27, 19:02

    WASHINGTON (AP) – A federal judge has dismissed a lawsuit against Hillary Clinton filed by the parents of two Americans killed in the U.S. diplomatic compound in Benghazi, Libya. U.S. District Judge Amy Berman Jackson in Washington says the former secretary of state didn’t defame the parents when disputing allegations that she had lied. The […]

  • News

    Remains of Arkansas soldier killed in Colony Glacier plane crash returned home

    by KTVA CBS 11 News on May 27, 18:52

    An Arkansas National Guardsman who was killed in plane crash in Alaska 65 years ago has finally made it home. Staff Sgt. Robert Dale Van Fossen was laid to rest Saturday in Little Rock. Arkansas governor Asa Hutchinson ordered flags lowered to half mast in Van Fossen’s honor. His remains were found among the wreckage of […]

  • News

    Historic planes head to Dutch Harbor to mark 75th anniversary of Aleutians battle

    by Dave Leval on May 27, 18:43

    John Pletcher’s invitation is too good to ignore — a chance for myself to get back in the sky for the first time in a while. It takes his JRF-5 Grumman Goose just seconds to take flight at Anchorage’s Merrill Field, then it’s off to Dutch Harbor, to take part in the 75th anniversary of […]

  • News

    NTSB investigating separate fatal crashes near Fairbanks, Haines

    by KTVA CBS 11 News on May 27, 14:46

    Last updated at 10:30 p.m. on Saturday, May 27 Two people are confirmed dead and one is in critical condition following a fatal plane crash near the small Southeast Alaska community of Haines. Alaska State Troopers (AST) confirmed 29-year-old David Kunat of Juneau and an unnamed adult male passenger from California were killed in the crash. Chan Valentine, […]

  • News

    Feds to gain control over Kuskokwim king salmon management

    by Associated Press on May 27, 12:55

    BETHEL, Alaska (AP) – Starting next month, the management of king salmon on a southwestern Alaska river will transfer from state control to federal. KYUK-AM reports that as of June 12, the U.S. Fish and Wildlife Service will begin to oversee the salmon living on lower and middle Kuskokwim River. Under federal law, the switch is […]

  • Lifestyle

    Gregg Allman of The Allman Brothers Band dies at age 69

    by Associated Press on May 27, 11:53

    SAVANNAH, Ga. (AP) – A publicist for rock legend Gregg Allman says the organist and singer for The Allman Brothers Band has died. He was 69. Ken Weinstein confirmed Saturday that Allman died at his home in Savannah, Georgia. Allman had cancelled some 2016 tour dates for health reasons. In March 2017, he canceled performances […]