Jeff Stein highlights one section of the Senate Republican initial offer for the next round of COVID-19 disaster relief. This section proposes to shift the current flat and guaranteed $600 a week federally funded supplemental payment to first a $200 per week payment and then a means tested program that serves as a 70% wage replacement stream. So that would be a massive income cut for many people who are laid off, furloughed or looking for work and not finding any. But that is not what I want to highlight.
Here it is: GOP plan on unemployment insurance, confirming our reporting this morning
Cuts $600/week benefit to $200/week — in October, replace $200/week w/ 70% replacement of lost wages
States can request a waiver if cannot make the switch pic.twitter.com/uAQnIRH3WP
— Jeff Stein (@JStein_WaPo) July 27, 2020
The sentence: “Starting in October, the additional payment would count as income when determining eligibiliy for federal low-income programs…” can be quickly translated as a method to significantly decrease Medicaid enrollment.
Under current law, income for Medicaid eligibility is determined on a monthly basis. Someone who has a good six months and made $100,000 before losing their job and earning nothing in month 7 can qualify for Medicaid on the basis of their income in month 7.
State funded unemployment insurance counts as income for Medicaid purposes. However, under the CARES Act, federally funded unemployment insurance income, of both the $600/week bump and pandemic unemployment insurance that covers many 1099 workers, does not count as income for Medicaid qualification purposes. It is quite plausible for someone to report both 0% Federal Poverty Level (FPL) and 250% FPL monthly income for different programs. Tens of thousands of individuals and families are receiving enough money to keep their head above water (or even occassionally get rid of some lead weights that has kept the water going into their mouths as they try to float) while qualifying for Medicaid. This is especially notable in states that have not expanded Medicaid. For instance,North Carolina’s Medicaid program will cover adult caregivers/guardians/parents of kids if the adult earns less than 44% FPL. Numerous families who have had all earners laid off or furloughed now qualify for North Carolina Medicaid even if they are not in deep poverty due to federal support. Many families who fall into the Medicaid gap at first glance are not in the gap because their federally funded unemployment benefits don’t count against them for Medicaid purposes.
Requiring all unemployment insurance payments to count as income for Medicaid purposes means many families will be experiencing the shock of job loss, the pain of significant income loss and the loss of any plausible source of affordable and decent insurance under this proposal.
Out of work in a pandemic, why care about Medicaid?Post + Comments (31)