Trump Greenlights Major Medicaid Changes
In a stark departure from past administrations, the Trump administration is allowing states to enact new Medicaid rules that will curtail benefits and reduce, rather than expand, the number of people eligible for the federal-state health program for the poor.
New work requirements have received most of the attention. This year, the administration has granted permission to
Since 2017, at least 15 states have either applied for or received permission to impose work requirements. But the changes go far beyond forcing Medicaid recipients to get jobs.
Armed with federal waivers allowing them to deviate from the normal Medicaid rules, states also have forced beneficiaries to pay premiums; "locked out" recipients who miss deadlines; stopped providing rides for medical appointments and eliminated retroactive coverage of new enrollees' medical bills.
Ten states have received or asked for permission to impose premiums. And nine have or are seeking waivers to lock out beneficiaries for not paying premiums on time.
Not since Republican President
"Generally, when you reduced in one area, you added in others," said
But Scully said the Trump administration is acting within the bounds of the law. "The [
To the Trump administration, getting people off the Medicaid rolls is the whole point.
In a letter to governors in
Current HHS Secretary
Former Trump health care adviser Nina Owcharenko Schaefer said the administration is simply allowing states to test their own ideas, a feature of Medicaid from its inception, in 1965.
"Like other administrations, this one recognizes that Medicaid is not a homogenous program that operates uniformly across state lines," said Schaefer, who is now a health policy analyst at the conservative
CMS did not respond to requests for comment other than referring to past statements by the agency.
But critics say the administration's actions are unprecedented -- and perhaps contrary to the intent of the Medicaid law. And opponents have challenged the work requirements and other waiver provisions in court.
A federal judge indicated at a hearing earlier this month that he will rule before April on lawsuits challenging the administration's approval of waivers for
"This administration's view of Medicaid is absolutely different and definitely contrary to congressional action," Harvard health economist
A
Medicaid at first served a limited population: the poor, children, their caretaker relatives, the blind and individuals with other disabilities. Over time, with federal approval, states were able to increase eligibility by raising qualifying income levels and making more categories of people eligible, such as pregnant women.
The Affordable Care Act of 2010 provided the largest expansion, providing for federal matching funds for coverage of childless adults with incomes up to 138 percent of the federal poverty line, or an average annual income for an individual of
To date, 36 states and
As of December, Medicaid covered about 65.9 million individuals, or about 1 in 5 people living in
Medicaid is governed by federal rules, but historically states have had the right to apply for exemptions from federal law to test innovations. Prior to the ACA, states mostly used those waivers to make more people eligible for the program or to switch from fee-for-service Medicaid plans to managed-care operations.
The HHS secretary has the authority to grant those waivers but only, according to federal statute, if the proposed changes are "likely to assist in promoting the objectives" of the Medicaid program, which is defined as providing health care to those "whose income and resources are insufficient to meet the costs of necessary medical services."
But in their 2017 letter to governors, Price and Verma argued that "the best way to improve the long-term health of low income Americans is to empower them with skills and employment."
They also said one purpose of waivers is to "align Medicaid and private insurance policies."
Verma elaborated on that idea in a speech last fall to a conference on Medicaid managed care.
"The problem too often is that the most well-meaning government policies trap people in a hopeless cycle of poverty, making it too difficult to escape, and too easy to become more dependent," she said.
"Instead, we ought to insist that the able-bodied participate in earning benefits."
In its pending application to require beneficiaries to work, go to school or participate in job training,
Critics say such assertions ignore data showing that among non-elderly adults receiving Medicaid, 8 out of 10 live in families in which someone in the household works, and the majority work themselves.
Similarly, in its approved application,
In its application on stopping payments for non-emergency medical transportation,
But
"Among lower income people, they believe there are people who are worthy of attention because they are elderly, or disabled or children, and it's not their fault they are in this lot," Cuello said. "Then, they think, there are the other people who are lazy, who don't deserve the help."
To be sure, the Trump administration has not been open to all of the new restrictions that states have proposed. Verma said last year she wouldn't approve waivers, sought by
Court's Ruling
In his preliminary ruling last June vacating HHS' approval of
The central concern of Medicaid, he said, was covering health care costs, not helping low-income people achieve financial independence or better self-esteem, justifications HHS accepted from
States also have justified cuts in services for budgetary concerns. For example,
Boasberg said such budgetary concerns could not be used to justify cutting services.
That position has been affirmed by the courts, said
"The courts have said quite firmly that saving money can't be a primary objective," she said.
"Are they taking other steps outside of the Medicaid program to get people into jobs that would provide them with employer-sponsored health insurance?"
Antos said he was skeptical that such efforts were taking place.
___
(c)2019 Stateline.org
Visit Stateline.org at www.stateline.org
Distributed by Tribune Content Agency, LLC.


Car DVR Market: Dashboard Camera Provides Impetus to Legal System, Insurance Companies
Automotive Telematics Insurances Market 2019 Leading Players: Octo Telematics, CalAmp, Agero, AXA, Intelligent Mechatronic Systems, Trakm8, TrueMotion, and Others
Advisor News
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
- Americans’ sense of overall prosperity still ticks upward
- Turning expanded eligibility into a better coverage plan for federal clients
- Election 2026: Which of Berkeley's 7 ballot measures will pass?
- How advisors can help frugal retirees finally enjoy their savings
More Advisor NewsAnnuity News
- AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
- Jackson reports record annuity sales, increases share repurchase authorization
- Why the market doesn’t need more carriers
- Equitable, Corebridge steam toward merger with strong Q3 annuity sales
- Jackson Announces New Annuity Offering for AARP Members
More Annuity NewsHealth/Employee Benefits News
- CVS Health will split into two new companies. What does it mean for Hartford-based insurer Aetna?
- An Application for the Trademark “ALMERA” Has Been Filed by Health Care Service Corporation: Health Care Service Corporation
- Reports Outline Managed Care Study Findings from Ohio State University (Factors Associated With Pretreatment Patient Attrition in an Advanced Orthodontic Education Clinic: A Cross-Sectional Study): Managed Care
- State: Beware of unlicensed health coverage marketed by LifeX Research Corporation
- Kirksville school board to meet Friday on benefits association agreement, 2027 health insurance rates
More Health/Employee Benefits NewsLife Insurance News
- Brighthouse Financial Announces Third Quarter 2026 Results
- Prudential earnings dip as Japan sales suspension offsets U.S. growth
- U-Haul Holding Company Reports Second Quarter Fiscal 2027 Financial Results
- Genworth Financial Announces Third Quarter 2026 Results
- AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
More Life Insurance News