Posted by AzBlueMeanie:
The Arizona legislature froze enrollment in the state's Medicaid system (AHCCCS) for chidless adults last year to balance the state budget. In a lawsuit challenging the budget cuts under Prop. 200 (2000), the Arizona Supreme Court wussed out relying on the political question doctrine of separation of powers to hold that the legislature has discretion to make budget decisions despite the citizens initiative, which takes precedence over simple legisaltive acts. I would argue the decision also eviscerated Prop. 105 (1998), the Voter Protection Act (apparently not so much).
In any case, the expanded Medicaid provisions of the Affordable Care Act present an opportunity to restore cuts to AHCCCS at a financial benefit to the state of Arizona. The Arizona Capitol Times (subscription required) reports Analysts: Arizona would get cash infusion by lifting Medicaid enrollment freeze:
[The Affordable Care Act] which the U.S. Supreme Court upheld last month incentivizes states to open their Medicaid rolls to more people beginning in 2014. Though the court struck down the penalties to states that don’t do so, the federal government still plans to dramatically increase the amount of money it gives to states to cover those new health care costs.
In particular, that money will cover much of the cost for states to include childless adults – the same group of Arizonans who were directly affected by the AHCCCS enrollment freeze.
Currently, the federal government covers 66 percent of the costs for that population.
But the match increases to roughly 74 percent in 2014 and continues to grow in subsequent years, reaching 91.5 percent in 2020.
Legislative budget analysts say that restoring the coverage for childless adults means lowering the cost for existing participants by $217 million, and that, in turn, will offset the cost of letting in new enrollees.
The bottom line, the analysts determined, is that the state could improve its financial position by $51 million by 2015 if it lifts the enrollment freeze.