Millions at Risk of Losing Health Insurance Under GOP Plan

Strategic Insights -

A new Republican domestic policy package could result in nearly 11.8 million adults and children losing health insurance, due to changes in Medicaid and Obamacare enrollment over a decade. The plan aims to reduce Medicaid spending by $1 trillion by simplifying eligibility checks, verifying income more frequently, and imposing work requirements on low-income individuals. This move could reverse years of progress in increasing health care coverage in the US, which has been marked by record spending on federally-funded health care coverage.

Key Takeaways:

  • The GOP plan proposes to verify a person's income every six months to check Medicaid eligibility, which may lead to thousands of people losing coverage, especially those who are homeless or transient.
  • States will be required to check enrollees’ addresses and death records more frequently, potentially resulting in coverage losses for individuals who do not respond or have outdated information.
  • People enrolled in the ACA's marketplace coverage will face scrutiny over their reported income and may face penalties if they earn more than expected, potentially leading to delayed or denied coverage.
  • States will be allowed to delay kids from enrolling in the Children’s Health Insurance Program and introduce waiting periods for kids transitioning from private health insurance plans to Medicaid.
  • The plan narrows the definition of who qualifies for lower Obamacare, restricting access for thousands of refugees and asylum seekers.
  • The proposed work requirement will require people aged 19 through 64 to work, volunteer, or go to school for 80 hours per month to qualify for Medicaid, exempting those with disabilities, pregnant individuals, and parents of children under 14.
  • According to the Cato Institute, the work requirement may encourage people who value Medicaid coverage not to sign up for it, potentially saving the government money.

Statistics:

  • 11.8 million adults and children will be at risk of losing health insurance if the GOP plan becomes a law.
  • 78 million adults and children are enrolled in Medicaid's programs, while 24 million people are enrolled in the ACA's marketplaces.
  • 18,000 people lost Medicaid coverage in Arkansas within seven months due to bureaucratic errors and difficulties verifying work.
  • The proposed work requirement affects 8% of Medicaid enrollees who report not working or being unable to find work.

Sources:

  • AP (no date listed)
  • Martha Santana-Chin, CEO of L.A. Care Health Plan (no date listed)
  • Michael F. Cannon, director of health policy studies at the Cato Institute (no date listed)
  • Jennifer Tolbert, director of state health policy at KFF (no date listed)