Medicaid Expansion Discussed in House Budget Hearing

The House Budget Committee heard testimony this week from Missouri's Medicaid program, known as MO HealthNet, regarding the cost of upcoming Medicaid expansion. MO HealthNet director Todd Richardson testified that Medicaid expansion is expected to cost $1.7 billion in Fiscal Year 2022 (beginning July 1, 2021), with most of that cost being borne by the federal government, as it will pick up 90 percent of the expansion portion of the program. Missouri's cost of implementation in FY22 would be around $113 million, although eight million will come from savings in other areas of the budget. MoHealthNet estimates that 275,000 eligible Missourians will enroll in FY22, although they expect around 150,000 in the initial enrollment period. 

Missouri voters approved Medicaid expansion last August, providing MO HealthNet coverage to Missouri adults with an income level at or below 133 percent of the federal poverty level (estimated at around $18,000 annually).