Davids Calls For Inclusion of State Medicaid Incentives and New Federal Action to Close Coverage Gap in Budget Package

Today, Representative Sharice Davids called for a dual approach to Medicaid expansion in the upcoming budget reconciliation package, urging Congressional leaders to both continue the current expansion incentives and include a federal plan to expand Medicaid coverage in states like Kansas, where state legislatures have repeatedly blocked it. Kansas is one of 12 states that has chosen not to take the financial incentives and expand Medicaid, leaving as many as 165,000 Kansans without access to affordable health care during a pandemic.

Davids, a longtime advocate for accessible and affordable health care, successfully fought to increase financial incentives for Medicaid expansion last year, securing a 100% federal cost match in health care legislation passed by the House. A version of Davids' bill to increase Medicaid incentives was then included in the American Rescue Plan, which became law in March of this year. Under the American Rescue Plan, Medicaid expansion in Kansas would be completely paid for through the first two years, after which the federal government would continue to cover 90% of the cost.

In a letter to the Speaker of the House, Senate Majority Leader, and chairs of both chambers' budget committees, Davids wrote: "Twelve states have not yet expanded Medicaid, including Kansas, despite strong economic and public health pressure to do so. That is why I request that both additional financial incentives for states to expand Medicaid and a federal strategy to close the coverage gap are included in the Build Back Better Plan."

Davids is a sponsor of the Medicaid Saves Lives Act, one federal strategy that would provide critical health care coverage to the more than 4 million Americans who live in states like Kansas that have refused to expand Medicaid. The bill creates a federal Medicaid-style program to extend coverage eligibility to all individuals under 138% of the Federal Poverty Level, establishing a permanent solution to restrictive systems used in non-expansion states. As Congress already paid for Medicaid expansion in the Affordable Care Act, this federal Medicaid program should require no additional offsets.

"It is unacceptable that people are suffering solely because partisan actors have chosen repeatedly to leave money on the table at the expense of their constituents' health and their state's economy," writes Davids. "It is urgent that we use every tool at our disposal to ensure that all Americans can access affordable health care, regardless of where they live."

Research confirms that Medicaid expansion increases access to care, improves financial security, and leads to better health outcomes, and failure to expand Medicaid disproportionately affects people of color, as 60% of people in the coverage gap are Black, Hispanic, Asian, or Pacific Islander. Additionally, a recent report found that Kansas could increase its economic output by $17 billion and add an estimated 23,000 new jobs if the state chose to expand Medicaid.

A full copy of the letter can be found here.