- Associated Press - Sunday, July 22, 2012

BROWNSVILLE, TEXAS (AP) - Jose Gallegos‘ company eliminated employee health insurance to save money, so when his gut started hurting and his skin took on a yellow tinge, he resisted seeing a doctor. When he finally went to the emergency room, physicians diagnosed stomach cancer.

Gallegos made too much money to qualify for Medicaid but not enough to buy his own insurance, so he scraped together what he could, and his wife, Andrea, took on three jobs. Just over a year later, at 41, he died, leaving behind four children.

Two years later, it was Andrea’s turn. A crack and sharp pain in her back drove her to the emergency room, where she learned she had breast cancer. It had snapped one of her vertebra. Now 45, she said the cancer remains in several other vertebrae, but at the moment it’s not spreading.

Families like the Gallegos stand at the center of a debate over President Barack Obama’s health care overhaul, which could have expanded Medicaid coverage to 1.3 million uninsured Texans. But Republican Gov. Rick Perry has said he will not widen the program because it would cost too much.

“It gets me mad,” Gallegos said. Perry “made a decision without us.”

Nowhere did Obama’s health care law hold more promise than in Texas, which leads the nation in the portion of its population that is uninsured. A quarter of Texans have no coverage, many of them families like the Gallegos who are considered the working poor.

Perry was not alone in his decision. Several other GOP governors made the same move or are contemplating doing so, saying they can’t afford to expand the joint state-federal program that provides care for the poor and disabled, or that they disagree with it philosophically.

Texas already has one of the nation’s most restrictive Medicaid programs, offering coverage only to the disabled, children and parents who earn less than $2,256 a year for a family of three.

Without a Medicaid expansion, the state’s working poor will continue relying on emergency rooms _ the most costly treatment option _ instead of primary care doctors. The Texas Hospital Association estimates that care for uninsured patients cost hospitals in the state $4.5 billion in 2010.

The expansion of Medicaid would cover 17 million uninsured Americans. The rest would be pushed into subsidized private insurance.

For the first 10 years under the new law, the federal government would pitch in about $7 for every $1 the state spends, according to estimates from the Texas Health and Human Services Department. The Center on Budget and Policy Priorities, which studies policies affecting the poor, shows an even higher rate of return.

But Perry wants the federal government to turn over the cash without strings and allow the state to develop its own program, something the Obama administration will not allow.

“I think it is very important for the people of Texas to understand that the current Medicaid program is unsustainable,” Perry said. “And to ask, or to demand, that the state of Texas expand a program that is already broken, is just not good public policy.”

Perry has said no Texan is going without health care because emergency rooms cannot turn away patients in urgent need. But the system to pay for chronic health problems is underfunded, difficult to navigate and as a result can shorten life expectancies.

Republican state Sen. Dan Patrick of Houston, a member of the Health and Human Services Committee, said he believes the majority of legislators support Perry on the issue.

Story Continues →