SC Gov. McMaster backs ‘reasonable’ Medicaid cuts in health-care repeal

S.C. Gov. Henry McMaster is urging Congress to repeal and replace President Barack Obama’s signature health-care law.

Capping spending on Medicaid, the federal health insurance program for the poor and disabled, should be part of that plan, the Richland Republican said in a Tuesday letter to U.S. Senate Majority Leader Mitch McConnell, R-Ky.

McMaster said he supports capping Medicaid at “reasonable” levels, giving states flexibility to cut costs “without sending them off the fiscal cliff.”

Reducing the growth in Medicaid is a key feature of congressional GOP plans to reduce federal deficits. However, experts say the cuts would force states, including South Carolina, to decide which Medicaid patients get limited dollars.

“Flexibility is not possible with caps. That is code for cuts,” said Sue Berkowitz with Columbia’s Appleseed Legal Justice Center, which advocates for low-income South Carolinians. “We will learn that the hard way if we do not stand up to the (Senate health-care bill).”

McMaster said the alternative to replacing the health-care law is “a simple repeal. The voters elected President (Donald) Trump and Republican majorities in Congress on promises that they would implement a cost-effective, free market replacement for Obamacare.”

McMaster’s letter comes as Republican U.S. senators plan to take another stab at repealing and replacing the Affordable Care Act. Lawmakers expect to release that plan Thursday. A previous draft met with opposition, including from moderate and conservative blocs of Senate Republicans.

McMaster, whose endorsement helped Trump win the pivotal S.C. GOP primary in 2016, said lawmakers should consider a plan that would abolish parts of the law requiring individuals to buy insurance and employers to provide it.

McMaster also said he supports tax credits, subsidies or some other support to help people with pre-existing conditions keep their insurance coverage.

McMaster said the cost of premiums has been on the rise “leading to increased dropouts and canceled coverage.” In South Carolina, average monthly premiums on the federal health insurance exchange increased 120 percent this year from 2013. The hike amounts to $279 a month.

Participation in the exchange has dropped to 183,506 South Carolinians as of early June, down from 194,440 in February, according to the S.C. Department of Insurance. However, participation had been on the rise, up from 186,812 in February 2016, 139,090 in February 2015, and 26,923 in February 2014.

This story was originally published July 11, 2017 at 3:05 PM with the headline "SC Gov. McMaster backs ‘reasonable’ Medicaid cuts in health-care repeal."