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The Right Note: Make Medicaid Expansion a Separate Issue

The Right Note is a weekly opinion column published on Thursdays. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Mark KellyLast fall, as the fiscal year closed in Washington, Republicans in Congress asked President Obama to consider repealing or delaying, part or all of, the Affordable Care Act. President Obama refused to negotiate on the issue. The result of the impasse was a 17-day partial government shutdown.

Republicans, arguing the president’s signature legislative initiative might not be ready for prime time, were panned for holding the federal budget hostage over Obamacare. As it turns out, the initial sign-up phase was a mess. Since then, the Obama Administration has announced several additional delays for employers and individuals necessitated by unfortunate realities of the law.

Now, Democrats in Richmond, lead by Governor Terry McAuliffe, are threatening not to agree to a state budget unless Republicans relent and agree to expand the Medicaid provisions of Obamacare into Virginia. This a reversal of the Democrat’s previous talking point that holding up a spending bill over legislation relating to Obamacare is unacceptable.

Expanding Medicaid would bring more borrowed federal dollars into Virginia initially, but those 90-100 percent federal subsidies will not last indefinitely. As Congress faces long-term budget realities and inevitably must lower the subsidies below 90 percent, Medicaid expansion would begin to crowd out other state budget priorities like education, transportation and public safety at an even faster pace than it is currently.

Currently, Medicaid costs almost $9 billion a year and consumes about 22 percent of our general fund budget in Virginia. It is the fastest-growing part of our budget, growing at an average of eight percent annually.

Moreover, it may not just be the subsidies themselves that drive up the costs of providing health care through Medicaid in Virginia. According to some, around one-third of doctors are already unwilling to accept Medicaid patients due to reimbursement rates that are substantially lower than private-sector health care coverage. Flooding an additional 400,000 Virginians into the existing pool of doctors will drive the percentage who can see a primary care physician down even further. This will leave many Medicaid patients with no option but to use emergency rooms for acute needs.

A Harvard study that looked at outcomes of a 2008 expansion of Medicaid in Oregon confirmed that it dramatically increased emergency room use — driving people into the highest-cost health care option. This finding goes against the promise of the Affordable Care Act that expanding Medicaid would help bend the health care cost curve down.

Low Medicaid reimbursement rates coupled with increased use of both emergency rooms and doctor visits will also shift even more costs for providing health care to private sector health plans. This will force more middle class Virginians to make more tough choices in their family budgets as premiums rise in the coming years.

All told, there are simply too many unanswered questions surrounding Medicaid expansion in Virginia to demand it be included in this budget. Governor McAuliffe and Democrats in Richmond should accept the budget that has been agreed to, and then take Republicans up on their offer to hold a special session to fully debate Medicaid expansion.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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