Working Families Tax Cuts Encourage Self-Reliance

Working Families Tax Cuts Encourage Self-Reliance

Washington, D.C.-While Medicaid was designed to benefit specific vulnerable populations-pregnant women, Americans with disabilities, low-income children and seniors-Obamacare distorted its intended purpose by incentivizing states to enroll and prioritize healthy adults. As a result, federal Medicaid spending has more than tripled since 2008, threatening the sustainability of the program. This expansion also hurt many low-income Americans by encouraging reliance on the federal government.

The Working Families Tax Cuts strengthens and preserves Medicaid for those who need it most. Commonsense community engagement requirements call for able-bodied adult Medicaid recipients to meet the monthly work requirement through employment, education, work programs or community service for 80 hours a month. These new requirements are designed to protect taxpayers, encourage self-reliance and help lift Americans out of poverty.

"Asking Medicaid recipients who can work, study or volunteer to do so for coverage is a commonsense policy that will strengthen the program's long-term viability and encourage personal responsibility," said U.S. Senate Finance Chairman Mike Crapo (R-Idaho). "These long-overdue improvements will benefit truly vulnerable populations, while moving people from welfare to work and self-sufficiency."

The Centers for Medicare and Medicaid Services (CMS) recently released regulations to guide state-by-state implementation of the requirements before they go into effect on January 1 of next year, and the public can comment on the interim final rule through the end of July. According to the rule:

• Able-bodied adults without young dependents must work, participate in a work training program, enroll in school or volunteer for at least 20 hours per week to be eligible for taxpayer-subsidized Medicaid coverage.
• • The law includes exceptions for those in situations that make it particularly hard to find work, such as participants in a drug or alcohol rehabilitation program.
• CMS's rule provides standards for states on how to confirm enrollee eligibility and offers states discretion as they work to implement the requirements by January 1, 2027.
• • CMS is also providing technical assistance and implementation funding opportunities to states.
• The policy could lift as many as 2.9 million people out of poverty by encouraging them to join the workforce.
• • Case studies from welfare reform in the 1990s have shown that work requirements are a useful tool to encourage work as a pathway to self-reliance.

What they are saying:

"The Working Families Tax Cut[s] made historic changes to the Medicaid program, and CMS is working closely with states to put those changes into action. This rule helps Americans build skills and independence through work, education, job training, or community service, creating new opportunities for themselves and their families." - Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz

"Much of the discussion surrounding work requirements focuses on coverage effects while ignoring the benefits of increased employment, earnings, and self-sufficiency. Evidence suggests that well-designed work requirements can promote economic independence." - Paragon Health Institute President Brian Blase

Click HERE to learn more about CMS's implementation of the Working Families Tax Cuts' new work requirements.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.