New Medicaid Work Rules by Repubs

Advocates for people with serious illnesses, like cancer and HIV, say the strict Medicaid work rules that the Trump administration released this week are likely to put ongoing treatments in jeopardy.

States must put the work requirements into effect by January 1. That was already a tight timeline, says Adrianna McIntyre, assistant professor of health policy at the Harvard T.H. Chan School of Public Health.

“It takes states literally months (usually years) to make the types of changes to their systems that they needed to make for this new rule,” she says. “They were severely constrained by the timeline having a year and a half from the time of the law being passed to implement all of this.”

At stake is health coverage for 68 million low-income Americans on Medicaid, the health insurance system jointly funded by states and the federal government.

States must “make the changes, test the changes to make sure they’re not going to break the system, and then go live,” McIntyre says.

The nearly 400-page interim final rule released Monday makes that process even harder. For months, federal officials have been meeting with states informally and giving them guidance, and states understood that people with conditions where continuous health insurance coverage was really important would be exempt.

“What the rule says, as published, is that that’s actually not enough,” McIntyre explains. “The condition or the disease needs to be actively interfering with your ability to work. So people with early stage cancer who are in radiation treatment but still have the capacity to work, or people who have HIV but can still technically work, are not exempted from the work requirement.”

McIntyre and others foresee situations where a person newly diagnosed with cancer, who is working, loses Medicaid because they don’t fill out the paperwork correctly. That could lead to patients losing coverage when they need it most.

Pitched as “a path to prosperity”

Republicans have long heralded work requirements as a way to encourage personal responsibility.

Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, presented the policy to reporters at the White House Tuesday.

“If you’re sitting at home, which is true for the millions of people who are able-bodied on Medicaid, on average, you’re spending 6.1 hours watching television, or just hanging around,” Oz said. “So, as a path to prosperity, Congress very wisely said, ‘Let’s get you back into the workforce.'”

Most on Medicaid already work 

Advocates warn of dire consequences

Medical groups and advocates for patients uniformly panned the rule. A coalition of 48 patient organizations wrote in a joint statement: “Our organizations are deeply concerned the interim final rule does not protect people with serious or complex health conditions and would instead dramatically and inappropriately increase the number of people who will lose their healthcare coverage.”

Carl Schmid, executive director of the HIV + Hepatitis Policy Institute, had been lobbying for months for people living with HIV to have a blanket exemption to no avail.

“We’re just going to lose people to Medicaid and then they’re going to get sick and then they’re going to die,” he says. “So, yeah, I’m upset.”

He says his group will file comment on the final rule, and start lobbying state by state to try and get exemptions. He thinks there will be lawsuits filed as well. (Comments are open on the interim final rule until July, and the government has the option to make changes to it or not.)

The American Academy of Pediatrics also urged the government to change the rule.

“The new burdensome requirements that many parents will face under this rule will ultimately undermine families’ health and financial stability,” Dr. Andrew D. Racine, the president of the AAP, wrote in a statement. “The policies to narrowly define who qualifies for exemptions will add to the state costs to administer the program, create headaches for families trying to navigate the bureaucracy, and harm the very people that Medicaid is meant to serve.”

No help to find work

“That just implies or suggests that somebody could get a job if they wanted — they just need a little shove,” Wagner says. “Which just reflects a complete lack of understanding of what people are actually going through.”

She expects that, rather than improve workforce participation, the complex rules laid out by federal health officials will cause chaos and confusion. “We know from past experience in Medicaid and other programs that it’s usually the eligible people who lose coverage because of the work requirement,” she says.

“Even if there’s an exemption on paper that they qualify for, even if they are compliant technically of the policy, the act of reporting it — understanding what they have to do, filling out the right paperwork, providing the right verification if necessary — there’s so much that can go wrong in that process that often leads to eligible people losing coverage,” Wagner explains.

Some Republican-led states are launching the requirement early, but most are expected to launch by January 1.