Md. House Approves Bill To Expand Medicaid Coverage for Family Planning

March 29, 2011 — The Maryland House on Saturday voted 122-14 to approve legislation (HB 778) that would allow women who are at or below 200% of the federal poverty level to become eligible for family planning services through Medicaid, AP/Washington Examiner reports. A similar measure is being considered in the state Senate. Under current state law, women are eligible for family planning services covered by Medicaid only after they have their first child (AP/Washington Examiner, 3/26).

The federal health reform law (PL 111-148) makes it easier for states to expand family planning eligibility through Medicaid. States wishing to expand eligibility can seek federal approval through a more efficient state Medicaid plan amendment process. Once CMS approves a state plan amendment, the changes become part of the state's Medicaid program and states do not have to reapply to continue offering the services. CMS will continue to reimburse states at a 90% matching rate for approved family planning services (Women’s Health Policy Report, 1/25).

According to an estimate by the Guttmacher Institute, expanding Medicaid eligibility for family planning services could reduce the number of unintended pregnancies in the state by about 4,000 per year. Delegate Heather Mizeur (D) said the bill would increase Medicaid spending by $6.5 million in the next fiscal year, but over the long-term, the state could save "as much as $40 million a year for this very small investment in empowering women's lives."

A federal government-funded analysis of state Medicaid family planning expansions found that Alabama, Arkansas, California, Oregon and South Carolina each saved more than $15 million a year after increasing eligibility (AP/Washington Examiner, 3/26).