Potential Impact of Medicaid Cuts (Part 2)

In my blog post last week, I began a discussion about the possible impact of cuts to Medicaid.  This past week the House of Representatives approved a bill that among other things, reduces the federal outlay for Medicaid by almost a billion dollars.  The bill now goes to the Senate where some changes will almost certainly be made in order to obtain the votes needed for passage.  So there is still a lot of uncertainty as to what a final bill would look like.

Nevertheless, we can examine what is and is not in the House bill just passed.  As I stated last week, the Medicaid program includes many different benefits.  The proposed cuts appear to be focused on the health insurance Medicaid benefits. The Medicaid long term care programs do not appear to be directly affected by these changes.

For example, the proposed changes would impose a work requirement.  This is the change that has probably received the most attention in the media.  Medicaid recipients would need to work at least 80 hours per month to be and then maintain eligibility.  

This requirement would apply to people ages 19 to 64.  In some cases community service, attending school or participating in a work program could be substituted.  Certain people would also be exempted from the work requirement.  One of those would be medically frail Medicaid recipients.

People receiving long term care Medicaid benefits tend to be older than 64.  Even if they are not, they most certainly would be categorized as medically frail making them also exempt from the work requirement.

There are other changes contained in the House bill that involve requirements imposed upon the states that, if not met, could result in reduced federal funding.  It is these requirements that could indirectly affect long term care Medicaid benefits.  I’ll explain more next week.