Rewriting the rules on health care for the poor, the Trump administration said Thursday it will allow states to require "able-bodied" Medicaid recipients to work, a hotly debated first in the program's half-century history.
Seema Verma, head of the Centers for Medicare and Medicaid Services, said requiring work or community involvement can make a positive difference in people's lives and in their health. The goal is to help people move from public assistance into jobs that provide health insurance.
"We see people moving off of Medicaid as a good outcome," Indian-American Verma said.
But advocates said work requirements will become one more hoop for low-income people to jump through, and many could be denied needed coverage because of technicalities and challenging new paperwork. Lawsuits are expected as individual states roll out work requirements.
"All of this on paper may sound reasonable, but if you think about the people who are affected, you can see people will fall through the cracks," said Judy Solomon of the Center on Budget and Policy Priorities, which advocates for the poor.
Created in 1965 for families on welfare and low-income seniors, Medicaid now covers more than 70 million people, or about 1 in 5 Americans. The federal-state collaboration has become the nation's largest health insurance programme.
Beneficiaries range from pregnant women and newborns to elderly nursing home residents. Medicaid was expanded under former President Barack Obama, with an option allowing states to cover millions more low-income adults. Many of them have jobs that don't provide health insurance.
People are not legally required to hold a job to be on Medicaid, but states traditionally can seek federal waivers to test new ideas for the programme.
Verma stressed that the administration is providing an option for states to require work, not making it mandatory across the country. Her agency spelled out safeguards that states should put in place to get federal approval for their waivers.
States can also require alternatives to work, including volunteering, caregiving, education, job training and even treatment for a substance abuse problem.
The administration said 10 states have applied for waivers involving work requirements or community involvement. They are: Arizona, Arkansas, Indiana, Kansas, Kentucky, Maine, New Hampshire, North Carolina, Utah and Wisconsin. Advocates for low-income people say they expect Kentucky's waiver to be approved shortly.
Disclaimer: No Business Standard Journalist was involved in creation of this content
