Treasurer Josh Mandel urges lawmakers to reject Kasich's recommendation to expand Medicaid

Ohio Treasurer Josh Mandel, in a letter to state lawmakers, says he fears that Ohio taxpayers of tomorrow will ultimately shoulder the cost of "a debt-funded Medicaid expansion."

COLUMBUS, Ohio - Ohio Treasurer Josh Mandel, citing concerns over a growing federal debt, has urged the General Assembly to reject Gov. John Kasich's recommendation that the state expand its Medicaid program to cover people who earn up to 138 percent of the federal poverty level.

"There is no free money," Mandel said in a letter dated Monday. "While expanding Medicaid may direct more federal dollars to Ohio in the next few years, in the long term Ohioans will have to repay the debt that is funding federal government spending."

Mandel sent the letter to fellow Republicans William Batchelder, the House Speaker, and Keith Faber, the Senate President. Members of both houses and Kasich, another fellow Republican, also got copies.

Kasich announced his support for the Medicaid expansion last week when he unveiled his biennial budget plan. At the time, he said it would extend coverage to "some of the poorest Ohioans."

But the issue is also important to Ohio's economy, governor's spokesman Rob Nichols said Tuesday.

"This is a complex issue and we don't fault people for not fully grasping it. The bottom line is that this helps reduce Obamacare's impact on our continued recovery, which takes more in-depth analysis to understand," Nichols said. "Keeping Ohio's economy strong, so our state can keep creating jobs, is the governor's top priority."

The Medicaid expansion is a part of the Patient Protection and Affordable Care Act, also known as Obamacare. The federal government says if states expand their programs, it will cover 100 percent of the cost of newly eligible enrollees for three years before reducing that support to 90 percent in future years.

Kasich, when he unveiled his budget plan, noted that given the reimbursement levels, accepting the expansion was fiscally responsible.

Some analysts estimate Ohio could see a net gain of $1.4 billion in federal contributions to the program by 2022. And the burden on counties would decrease as the expanded coverage picks up the tab for some of their expenses, such as behavioral health care.

Mandel's letter taps into an issue that could divide Republicans who have generally supported Kasich's initiatives. Conservative lawmakers may balk at such an expansion of a government program.

Seth Unger, communications director for the treasurer, said Mandel had no further comment beyond his letter. But in that letter, the conservative state treasurer who unsuccessfully challenged Democratic Sen. Sherrod Brown's re-election and was championed by former Tea Party Sen. Jim DeMint of South Carolina, focused on the long term costs to the nation.

"Though the federal government is promising to pay for most of the expansion in the near term, it is currently borrowing approximately 40 cents of every dollar it spends," Mandel wrote.

"As Ohioans, we share a common fate with all Americans," he wrote. "Whether taxed by the state or the federal government, the Ohio taxpayers of tomorrow will inevitably shoulder the costs of a debt-funded Medicaid expansion."

A call for comment from the Republican leadership in the Senate was not returned.

Mike Dittoe, director of communications for the House Republican Caucus, acknowledged that the letter was received, but said Batchelder was in meetings all day Tuesday and as of late afternoon had not seen it.

Batchelder has not taken a formal position on the expansion of Medicaid. Committee hearings on the budget are just beginning, Dittoe said, and the speaker will wait for advice, particularly from Rep. Ron Amstutz, who chairs the House Finance Committee and is shepherding the budget through the chamber, and Rep. Barbara Sears, who has expertise on the issue of Medicaid.