Kasich's Budget Keeps Medicaid Expansion But Has No Plan B for Obamacare Repeal

January 31, 2017

Amid uncertainty about the expected repeal of the Affordable Care Act, Gov. John Kasich's final two-year budget proposal maintains Medicaid health coverage for 3 million poor and disabled Ohioans, including the 700,000 childless adults added to the rolls under Obamacare.

To curb costs, Kasich's plan for Ohio's tax-funded health insurance program would save hundreds of millions by cutting payments to hospitals and nursing homes, charging premiums to some beneficiaries, and moving nursing home residents and others into private managed-care plans.

The Republican governor also unveiled a replacement for the state tax on Medicaid managed-care companies that was deemed impermissible by federal regulators.

But Kasich's plan includes no backup should President Donald Trump and congressional Republicans follow through on promises to repeal the Affordable Care Act and states lose Medicaid expansion funding.

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