November 12, 2009

Department of Social Services reports on employers whose employees and dependents are eligible for Medicaid
The Department of Social Services released a report on October 23 that details the number of workers - and workers dependents -  insured by MO HealthNet (Medicaid) in Missouri entities that have more than 50 such workers.

According to the Department, this is not meant to be a full accounting of Missouri employers with employees insured by MO HealthNet, but rather to provide information on the information on the relative incidence of MO HealthNet enrollment among larger Missouri employers.

Wal-Mart had 8,194 employees and employee dependents enrolled in MO HealthNet, the highest number of any employer. In the 3 month period during which the data was compiled, the cost to the state to insure these individuals was $4.2 million. 

Casey's General Store was second with 1,035 employees and family members enrolled in MO HealthNet at a 3 month cost to the state of $884,000.  The State of Missouri had the third highest number of employees and dependents enrolled in Medicaid, with 1,915 at a 3 month cost of $806,000.

The list includes many large corporations with a strictly business focus, casinos, home health providers and other employers within the service industry, as well as small Mom & Pop businesses. It even includes health insurance companies!

This eligibility for MO HealthNet indicates that the worker is working at low wages, working part-time and/or the company does not offer affordable family coverage. The study also underscores the importance of Medicaid in reducing the number of uninsured. It also raises questions about entities that have received tax breaks or incentives to locate or expand in Missouri, yet do not offer a living wage.

The full report is available at http://www.dss.mo.gov/mhd/general/pdf/emp-match.pdf.

Governor Nixon restricts an additional $203.7 million to balance the current budget
Faced with first quarter revenue that is 10 percent below that of the first quarter in the previous fiscal year, Governor Nixon announced yet another round of restrictions to balance the FY2010 budget. With these new restrictions, the Governor has withheld a total of $588 million in the FY2010 budget, in addition to vetoing $105 million.  The total state budget is $23.1 billion and general revenue made up about one third of the entire budget ($7.8 billion) sent to the Governor.

In keeping with the vetoes and restrictions made earlier this year, elementary and secondary education received relatively small reductions.  Higher education has been sheltered mostly to honor the agreement the Governor crafted during last year's legislative session to protect higher education if universities promised not to increase tuition.

The largest restrictions announced in this round were in the areas of facilities maintenance and repairs, funding for arts and education, research grants in life sciences, salaries in the Departments of Corrections, Mental Health and Health & Senior Services, funding for new clients who have a mental illness, funding for projects in the area of mental health, improvements in administration in the Department of Social Services, and Medicaid.

These cuts seriously undermine the quality of life for Missourians, and will make it more difficult for vulnerable individuals to obtain needed services.  The Missouri Budget Projects believes we cannot adequately address our budget problems without balanced solutions that include raising revenue.  There are some shorter term ways to accomplish this without raising taxes, such as closing corporate tax loopholes and ending the outdated practice of giving discounts to businesses that file their taxes in a timely way. 

Longer term, the state could make changes that would level the playing field for Missouri businesses by taxing internet sales in the same way local sales are taxed.  In addition, Missouri's income tax structure is grossly outdated. The top tax bracket is $9000, the same as it was in 1931. The income tax's progressive structure has eroded over time.

For a summary of the cuts, go to http://www.mobudget.org/files/Governor%20Restrictions%2010%2028%2009_summary_pdf.pdf

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