Granholm backs $1B health plan for poor

LANSING -- Gov. Jennifer Granholm will propose in her State of the State address Wednesday a $1 billion plan to cut in half the number of Michiganians without health insurance.

Under her so-called "Michigan Health First Partnership," some 500,000 low-income residents -- most of them working adults -- would get state-issued health care cards.

Those earning less than the federal poverty level, which is $18,850 for a family of four, would have no co-pays or deductibles. The amount recipients would have to contribute would rise along with their income. The cut-off would be double the poverty level, or $38,700 for a family of four.

Michigan would kick in about $400 million, which administration officials said the state is already paying through various programs for the uninsured, and the federal government would be expected to ante up $500 million to $600 million. The program would require no new taxes, Granholm aides said. Under the most optimistic scenario, the proposal is many months from being put in place.

Prospects for approval from the Republican-controlled Legislature in an election year are uncertain. Administration officials weren't even sure if legislative action would be required.

"If someone can come up with a proposal so people can lead a better life, we'd obviously be interested in studying the proposal," said Ari Adler, spokesman for Senate Majority Leader Ken Sikkema, R-Wyoming. Adler said Republicans in the Legislature are skeptical the money can be found to operate the program in the current budget.

The ambitious proposal is a centerpiece of the governor's fourth State of the State Address, to be delivered at 7 p.m. Wednesday to the Legislature and broadcast live over public television stations. Insiders have said the message will have few new proposals because the economically challenged state continues to be strapped for cash. The governor will present her budget for the upcoming fiscal year on Feb. 9.

"It's a great goal; we're spending this money already and I don't think it will be hard to get our arms around it," said Janet Olszewski, director of the state Department of Community Health.

Granholm also will call for stepping up efforts to improve healthy lifestyles through education programs at schools, offices and churches. Finally, she will advocate setting up the nation's first statewide electronic network to consolidate health care information so it can be easily shared by doctors, hospitals and other health care providers.

The governor's health insurance expansion initiative will cover only half of the state's 1 million uninsured, Olszewski said, because that's all the state can afford now. Cards would be issued to the first eligible 500,000 who apply, she said.

"We would love to get all the way but we believe at this point we have identified a plan to get us halfway," Olszewski said.

Olszewski said the governor has already met with U.S. Department of Health and Human Services Director Mike Leavitt about the program and she characterized his response as "enthusiastic." She said the state and federal governments are still working out details.

The state also is looking at how to prevent businesses already offering health care from dropping that benefit to take advantage of the new state plan, she said.

"We're going to be designing this very carefully," Olszewski said.

Kevin Kelly, executive director of the Michigan State Medical Society, called the plan "very aggressive. But I think we ought to be able to tackle it.

"We certainly are looking at some kind of expanded coverage for the uninsured in this state, whose numbers are growing every year."

Brian Peters, senior vice president of the Michigan Health and Hospital Association, said the proposal "is a good start.

"Health care providers pick up $1 billion a year in costs for health care for the uninsured. But aside from the financial hit on hospitals, it's a poor approach not to cover people. Because instead of seeking primary care, they wait until their condition worsens and then they have to seek more expensive care."

The plan would be separate from the state Medicaid program, which provides health care coverage for 1.5 million residents, including children, disabled and senior citizens.

Pressed for details on how the state will round up $400 million to sock into the program, Olszewski said: "We're working on that right now."

Liz Boyd, the governor's press secretary, said by redirecting dollars, the state should be able to leverage money from the federal government to help pay for the program.

"This is going to take time to put together. It will take an awful lot of work to put this in place," Boyd said.

Olszewski stressed that Granholm's plan also includes healthy lifestyle promotion. She noted that most health care money goes to the treatment of chronic diseases, which lifestyle changes can prevent or minimize.

"We need to be more physically active, we need to eat better and we need to not smoke," she said.

Granholm sees the plan as a key element in her overall economic development strategy: A state with better health care coverage -- and better health -- would be viewed as a better place to live and do business.

Olszewski said she was particularly concerned by the "childhood obesity epidemic in Michigan" and said schools are already beginning to address the problem by changing lunch menus, restocking vending machines and offering more physical education.

Businesses can also play a role by having bike and walking paths nearby so employees can exercise during breaks.

"Focusing on healthy lifestyles will go a long way to reducing health care costs and to attracting new business to this state," said Peters at the Michigan Health and Hospital Association.

Copyright 2006.  The Detriot News.  Reprinted with permission.