After the Trump administration gave states permission to impose new restrictions on Medicaid eligibility, Kentucky Governor Matt Bevin wasted no time.
Within days, Kentucky instituted a new rule requiring “able-bodied” adults on the health insurance program for the poor and disabled to complete 80 hours of “community engagement” per month. Paid work, job training, volunteering or being the primary caregiver for children and the elderly all count.
Advocates for disabled and low-income people fear that this mandate, which could spread to at least 10 other states, will strip millions of insured Americans of their health coverage.
The states taking this step say it has become increasingly hard for them to cover their share of Medicaid’s costs. But, based on my health economics research, I believe that the policy is unfair to the most vulnerable and may end up not saving any money.
Kentucky Gov. Matt Bevin, whose office estimates that its plan to impose new work requirements on people with Medicaid will save the state almost US$2.5 billion, interviewed by PBS NewsHour’s Judy Woodruff .
Jointly Financed
Medicaid, which covers 20 percent of Americans, is jointly financed. The federal government covered 67 percent of Medicaid’s US$553 billion cost in 2016. The states, which administer the program within their borders, had to foot the rest of the bill.
Many states say that the program consumes more and more of their budgets, leaving less money for other priorities. It’s true: State Medicaid spending, which has risen annually since 2010, spiked by an average of almost 14 percent in 2015.
That’s mainly due to the influx of newly eligible enrollees in the 32 states — including Kentucky — that expanded their Medicaid programs under Obamacare. The District of Columbia has also taken this step.
Although the pace of new enrollment tied to Obamacare is now slowing down, state Medicaid expenditures are rising faster because states are starting to pay a small and…