Medicaid recipients say they're one step closer to survival after a bill that eliminates the Medicaid spend-down provision unanimously passed through the Utah House Health and Human Services Standing Committee.

House Bill 37, which modifies the Medical Assistance Act, passed through the committee Wednesday afternoon and will go on to the full House for debate.

"I'm very happy about what happened in there," said Wendy Hawkins of West Valley, who attended the meeting. I hope the bill continues to pass through wherever it needs to go."

Hawkins' husband is enrolled in Medicaid and can no longer work because of lung failure. Hawkins' family is living on Social Security while she returns to school.

Hawkins is not alone. Figures from 1999 show 67,409 people are enrolled in Utah's Medicaid program.

Beginning March 1, Medicaid rules stipulate that recipients' income must remain below 75 percent of the federal poverty level. A recipient whose annual income exceeds this standard would no longer receive free Medicaid assistance.

This means if a person earns even one dollar more than the allowed amount, he or she is forced to "spend down," or pay $383 per month toward medical expenses.

"This is forcing individuals into deeper poverty in order to give them some basic medical help," said Rep. Rebecca Lockhart, R-Provo, sponsor of the bill. "I've heard of people having to get a divorce in order to qualify for Medicaid because their income was too high."

Medicaid enrollee Dorothy Beaumont of West Jordan testified before the committee.

"I'm currently taking eight medications," Beaumont said. "If this spend-down continues, goes through, I won't be able to pay for my food and utilities. I'll be living in my car. My future, my life is at stake. We have to get this bill through."

The Catholic Church has taken a favorable stance on the bill.

"This is a ray of sunshine. It's certainly our priority to see that this bill is passed," said Dee Rowland, government relations representative for the Utah Catholic Diocese. "It's a principle of the Church that health care be available to everyone. We cannot cut off the most vulnerable in our population, and that's what reducing it to 75 percent would do."

The bill mandates that 100 percent of the FPL will be the allowable income standard before "spend down" is required for Medicaid coverage.

Analysts estimate the bill would cost about $23.3 million, with $6.8 million from state general funds and the balance from federal matching funds.

Costs for administrative implementation of the bill are estimated at $100,000.
Copyright Brigham Young University 22 Feb 2003