ARI SHAPIRO, HOST:
The Trump administration has moved quickly to let states impose work requirements on some Medicaid recipients. Kentucky got the green light today. Indiana is likely to get approval soon. Some people consider the work requirement good politics, but bad policy. From Indianapolis, Side Effects Public Media's Jake Harper reports.
JAKE HARPER, BYLINE: Indiana submitted plans for a work requirement last year, and the approval letter could come any day now. Under the proposal, people would have to average 20 hours a week of work or another qualifying activity such as volunteering or education in order to get Medicaid. The goal - to increase employment among Medicaid recipients. But Sara Rosenbaum, a professor at George Washington University, says there's a problem with that - most people on Medicaid are already working.
SARA ROSENBAUM: Or they're looking for work. And if they're not working or looking for work, it's typically because they're either caring for very young children, or they're caring for a sick family member, or their own health is bad.
HARPER: Many of those people would be exempt from a work requirement, and states could make some allowances for people battling addiction. When you consider those exemptions...
ROSENBAUM: There is this very, very tiny slice of people who can work and simply choose not to work and, you know, apply for public assistance.
HARPER: But Rosenbaum says even if states create programs that help people find jobs and provide things like child care and transportation, there's no evidence that they lead to more employment. And those programs are expensive.
ROSENBAUM: If you do a work program, that costs real money. And the federal government has said, we won't pay any of those costs.
HARPER: So Rosenbaum says what's more likely is that states will basically say, get a job on your own or get off of Medicaid. So what that does is create a hurdle for everybody on Medicaid. People who are working are going to have to prove it, so even people with jobs could stand to lose their insurance due to red tape. In fact, Indiana's own projections show that with a work requirement Medicaid will cover fewer people and cost more. Adam Mueller is an attorney at Indiana Legal Services, which helps people navigate the state's Medicaid program. He says people already lose coverage because the program can be confusing and there are administrative errors.
ADAM MUELLER: Somewhere along the way paperwork gets lost, there's a miscommunication. Folks have sometimes had difficulty proving things that should be as easy as residency.
HARPER: And he says people on Medicaid often deal with crises. They may move a lot or change phone numbers, which makes it hard to keep track of paperwork.
MUELLER: There are a lot of things that could trip folks up. And that could lead to falling through the cracks.
HARPER: Judy Solomon of the Center for Budget and Policy Priorities points out that expanded Medicaid helps some employers, too.
JUDITH SOLOMON: We have an economic structure where there are people whose employment doesn't provide health care.
HARPER: If people lose Medicaid, get sick and can't make it to work, she says that's bad for business. Seema Verma, who's in charge of Medicaid, said on a conference call yesterday the requirement is supposed to help people.
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SEEMA VERMA: People moving off of Medicaid is a good outcome because we hope that that means that they don't need the program anymore, that they have transitioned to a job that provides health insurance so that they can afford to pay for health insurance on their own.
HARPER: But advocates say the main purpose of Medicaid is to provide health insurance, not increase employment. And until now, the federal government agreed. Susan Jo Thomas heads Covering Kids and Families of Indiana, which advocates for health coverage in the state. She says under new management, the philosophy surrounding work requirements has changed.
SUSAN JO THOMAS: I don't know that it jives with my view of Medicaid, but my view of Medicaid now is irrelevant. It's what Seema Verma and the administration decide.
HARPER: Thomas says the details of the work requirement have yet to be ironed out. She says if too many people lose insurance, she'll be raising concerns with the state. For NPR News, I'm Jake Harper in Indianapolis.
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SHAPIRO: This story is part of an NPR partnership with WFYI and Kaiser Health News.
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