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OPINION

HOW THE GOP’S MEDICAID WORK REQUIREMENTS WILL BACKFIRE

By Catherine Rampell
Columnist|AddFollow
April 27, 2023 at 6:15 p.m. EDT

The U.S. Capitol on April 19. (J. Scott Applewhite/AP)

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Unlike most things in the House Republicans’ debt-limit bill — such as those
across-the-board spending cuts — there is one measure that might secure
widespread support: adding work requirements to Medicaid. In past surveys, even
a significant share of Democratic voters appeared amenable to the idea.



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But Medicaid work requirements are a solution in search of a problem. Worse than
that, they will create significant new problems, particularly among the
vulnerable population the policy is supposed to help.

The perception that Medicaid is saturated with lazy shirkers is false. About 60
percent of nonelderly adults on Medicaid are already working, according to the
Kaiser Family Foundation. Most of those not working either have a disability or
serious medical condition or caregiving responsibilities, or they are enrolled
in school — all of which happen to be among the specific exemptions laid out in
the GOP bill.

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If most Medicaid recipients are working anyway, or are exempt from the
requirements, you might ask what’s the harm in asking them to provide evidence
of their compliance? Perhaps in the process, you might also nudge some of those
not working into gainful employment.


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In theory, this sounds reasonable. In practice, implementation can be a
Kafkaesque nightmare. We know this because it was tried in Arkansas in 2018,
with backing from the Trump administration.

By the time a federal judge paused Arkansas’ experiment less than a year after
it launched, 18,000 lower-income people had already been purged from the state
Medicaid rolls — and not necessarily because they were failing to work 80 hours
a month, as the state required (and as the new House GOP bill would mandate,
too). Many were working but found it challenging to prove to the state that they
met the “community engagement” requirements or allowable exemptions. That’s
because the reporting process was confusing and onerous.

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In fact, at least one person I interviewed at the time had been working, but was
forced out of his work as a result of the reporting requirements.

Adrian McGonigal, a full-time employee at a poultry plant, had difficulty
accessing the state website required to log his hours. He was abruptly
disenrolled from Medicaid and was unable to afford the medications he needed to
manage his severe COPD, a chronic lung disease that makes it difficult to
breathe. McGonigal landed in the emergency room multiple times, missed too much
work and ultimately lost his job.

In other words, for people such as McGonigal, access to health insurance and
care should be seen as a work support, rather than a work disincentive.

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A subsequent analysis of the Arkansas program, published in Health Affairs,
found that it did not increase employment levels. But it did have long-term,
adverse consequences for those who lost coverage. Of those purged, 50 percent
reported serious problems paying off medical debt, 56 percent delayed care due
to cost, and 64 percent delayed taking medications because of cost.

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How much can we generalize from Arkansas’ experience? Its program did seem to be
particularly poorly executed, after all. The state’s Medicaid enrollees were
required to use a glitchy web portal, which perplexingly shut down every night
from 9 p.m. to 7 a.m. (for “scheduled maintenance,” I was told). The site also
didn’t work well on smartphones. Many lower-income Arkansans, McGonigal
included, don’t otherwise have reliable access to the internet.

Theoretically, maybe Congress could design a version of this policy that would
be less likely to harm “deserving” Medicaid enrollees. This would require a much
bigger, more robust and more expensive bureaucracy, so that the state correctly
identifies and penalizes only the tiny minority of Medicaid recipients not
already working or with valid exemptions from work.

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The cost of such a system might not outweigh whatever savings are achieved by
purging those few “undeserving” loafers.

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And again: to what end?

Helping more people find work, and move up the income ladder, is a worthy goal.
But there’s little evidence that this particular policy would achieve that. It
didn’t in Arkansas, and the Congressional Budget Office expects that the version
included in the House bill wouldn’t, either. In a letter on Wednesday, the CBO
concluded the measure “would have a negligible effect on employment status or
hours worked by people who would be subject to the work requirements.”

On the other hand, the policy would result in roughly 1.5 million Americans
nationwide losing federal funding for their Medicaid coverage, the CBO
estimated. States would then have to decide whether to cut these enrollees loose
or find and fund alternative means of coverage.

By all means, let’s help more Americans find jobs. Having bountiful job openings
helps. Education, training and other government programs specifically designed
to encourage work are all important, too.

So is keeping the populace healthy enough to work.

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