Millions of Working People Could Lose Medicaid Under Proposed Work Requirements

The Issue

Researchers say these individuals would fail to meet the letter of the law due to the unstable nature of some employment—like service workers without consistent hours and those who experience seasonal layoffs. 

Key Findings: 

• Among the 31% of enrollees in expanded Medicaid programs who do not work or attend school, more than two-thirds (21%) are not working because of a health condition, disability, caregiving responsibilities, or difficulty finding employment. 
• Only 2% of expansion enrollees do not work or attend school and cite lack of interest as a reason for not working, according to the findings. These enrollees constitute a small fraction of the 4.8 to 6 million adults projected to lose coverage under the policy.
• The analysis notes that imposing work requirements as a condition of initial Medicaid enrollment, as the bill currently does, would reduce enrollment among adults who seek Medicaid coverage because of job loss. The analysis shows nearly one in six adults (16%) experience a job loss during the six months prior to or the month of applying for Medicaid.

Conclusion

Researchers conclude imposing work requirements as a condition of initial Medicaid enrollment would deny Medicaid coverage to many working people, not just those who can work but choose not to. 

About the Author/Grantee

The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health Policy Center for more information specific to its staff and its recent research.