January 12, 2009
Many States Use Medicaid to Expand Health Coverage
by Renate Pore
As employer-based health insurance coverage continues to erode[i], many states are turning to Medicaid to insure low-income working parents. Medicaid is a good strategy for states because the federal government provides a match for state efforts that range from 50 percent to 75.84 percent. West Virginia’s match in the FY 2009 is set at 73.73, the second highest rate of any state. This means that for every $100.00 spent by Medicaid, the federal government will reimburse West Virginia with $73.73.
| West Virginia Federal Match for Medicaid 2009 | 73.73% |
| Eligibility for Working Parents -- Percent of Poverty 2009 | 35% |
| Annual Income at 35% of the Poverty Level for Family of three | $6,160 |
While West Virginia has done a good job of insuring low-income children through Medicaid and the West Virginia Children’s Health Insurance Program (CHIP), the state has done little to expand coverage to low-income parents. Eligibility for Medicaid for working parents is set at 35 percent of the federal poverty level or $6,160 for a family of three. The following chart shows the states that have expanded coverage to parents and their federal matching rate.
If West Virginia wants to help low-income working families have health care coverage, using Medicaid as the vehicle is a good strategy. By expanding coverage, West Virginia will reduce the number of uninsured families, support work, and help employers and insured individuals who currently pay more for health insurance premiums because of the large number of uninsured.[ii]
[i] For precise figures see
State of Working West
Virginia, 2008
[ii] Kathleen Stoll, Paying a Premium:
The Added Cost of Caring for the Uninsured Families USA, June
2005.