Pence dashes Daugaard's hopes of Medicaid expansion
Plans to move forward on Medicaid expansion during the 2017 legislative session came to an abrupt halt Tuesday.
Gov. Dennis Daugaard, one of the plan's key architects, in a statement said based on the election of Republican Donald Trump and the administration's plans moving forward, he would drop his request that the state Legislature weigh expanding the health insurance program for needy people.
Daugaard said he met with Vice President-elect Mike Pence Monday at a Republican Governors Association conference and determined that the effort could be futile as the Trump administration hopes to repeal and reform the Affordable Care Act.
“Based on that discussion, I will not recommend that South Dakota pursue Medicaid expansion in 2017," Daugaard said.
MORE POLITICS: After loss, Hawks calls for 'shake-up' in Democratic Party
The news was met with disappointment from Democrats and health groups in the state and with satisfaction from conservative Republicans who'd expressed concern about growing federal programs and national debt.
Sen. Billie Sutton, D-Burke, said he was disappointed that the governor won't continue his efforts to expand Medicaid this year. Sutton said he worried that South Dakota residents would have to continue without insurance as a result of the Trump administration's decision to repeal and reform the program.
"Elections have consequences and this is one of the consequences of the last election," the Senate Minority Leader said. "And in this case it's costing people's lives and it's very frustrating."
Tim Rave, Sanford Health executive director of public policy, said the decision wasn't surprising given uncertainty following the election and pointed to other states that benefited from expanding the program.
Deb Fischer-Clemens, senior vice president of public policy at Avera Health, said the group is working with state and federal officials to consider ways to provide health care to low-income residents under a reformed program. She said health groups in the state likely won't get as much federal funding and will need to become more innovative in delivering care.
"I just think we'll find another path," she said.
Rep. Don Haggar, R-Sioux Falls, said he thought it was wise for Daugaard to pause on expansion until details of the health insurance program become clear next year. He said that no matter what the Trump administration decides as far as reforming the act, he hopes that the feds will foot the bill for Native American health care.
"I still think they have that responsibility," Haggar said.
MORE POLITICS: State's chief budget officer placed on leave
Last year, Daugaard proposed that the state expand Medicaid as part of a deal with the Indian Health Service. The federal agency changed a policy that allowed some of the cost of providing health care to the state's Native American citizens to be covered by other federal programs rather than the state.
In exchange, Daugaard said the state would consider expanding Medicaid to as many as 50,000 South Dakota residents if the Legislature and the Tribes agreed.
The Republican governor said the cost-saving proposal might not be entirely off the table under a Trump presidency.
“With the national election results, the prospect of reforming Medicaid in our country is real, and I intend to work with the Trump Administration and with our congressional delegation to find a way to leverage the IHS policy change to improve access to health care through Medicaid reform," he said.
Follow Dana Ferguson on Twitter @bydanaferguson, call (605) 370-2493 or email dferguson@argusleader.com