"I believe we can accomplish the goal of taking care of the neediest among us in a fiscally responsible way," Herbert said in announcing his "Healthy Utah Plan".
It is not, Herbert said, an expansion of Medicaid, but a three-year, Utah-run pilot program that "will not only help us meet our moral responsibility to care for the poorest among us … but it will do it in a way that will keep the state in control."
The governor’s proposal hinges on getting permission from the U.S. Department of Health and Human Services to use $258 million per year in federal money to provide subsidies to Utahns up to 138 percent of poverty, an individual earning $15,500 annually.
That would allow the state, Herbert said, to subsidize coverage for the lowest-income Utahns, with the amount individuals would receive based on a sliding scale.
The subsidies would be dependent on a recipient’s household income, ability to work, access to other insurance, and health-care needs and family circumstances.
Recipients of the subsidies would be expected to contribute about $420 per year on average toward their health costs.
"We have a really legitimate opportunity to do something that I think is going to be a game-changer, not only for Utah but for other states," Herbert said.
In many ways, Herbert’s program mirrors expansion programs in Arkansas and Iowa that have received federal waivers. And the governor said — based on meetings with top White House officials, including President Barack Obama, Health and Human Services Secretary Kathleen Sebelius, and others — he is encouraged the federal waiver will come.