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Home » Blog » What Is the Economic Impact of Medicaid Work Requirements?
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What Is the Economic Impact of Medicaid Work Requirements?

Rachel CollinsBy Rachel CollinsMay 6, 2025
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Proposing Medicaid’s work requirements can greatly limit access to health coverage, lead to substantial economic losses and fall into employment or increase employment, warns a new report.

The report was published last week by the Commonwealth Fund and the Public Health School of the Milken Institute of the George Washington University. It occurs when Congress considers federal budget legislation that includes a proposal to demand adults from 19 to 55 years with wood dependents to work to be eligible for Medicaid. It is part of an effort to reduce the federal deficit by creating at least $ 880 billion in savings during the next decade, and Medicaid is expected to receive significant success.

The researchers found that between 4.6 million and 5.2 million adults would lose the coverage of Medicaid in 2026 due to work requirements. This was mainly due to the fact that either the barriers of paperwork, instead of a lack of capital letter to work. The report also stressed that most adults in Medicaid are already employed or should qualify for the eximitions of work requirements due to factors such as care, poor health or school attendance responsibilities.

Because federal financing is linked to the registration number, many states would face fund cuts, since the work requirements make people lose the coverage of Medicaid, the report said. The 40 states that have expanded the election of Medicaid, as well as in Washington DC, would lose between $ 32.9 billion and $ 45.9 billion in federal funds in 2026, and up to $ 504 billion approximately one decade. The remaining 10 states that have not expanded Medicaid would not lose federal funds, according to the report.

The loss of financing would lead to personnel and service cuts. Researchers estimate that between 322,000 and 449,000 jobs would be eliminated. This includes up to 206000 medical care jobs, such as hospitals, medical offices, clinics and pharmacies. In addition, up to 242,000 jobs would be lost in other fields, including retail trade, food and construction service.

These job losses want causes of cause in state and local GDP and income. Combined GDP at the state level could reduce by $ 43 billion to $ 59 billion in 2026 due to less expense and economic activity. And governments would recite $ 3.2 billion at $ 4.4 billion less in tax revenues due to labor and commercial losses.

“Medicaid is a powerful economic engine. When it cuts it, the damage extends far beyond the health sector. Our analysis shows that the medicalid work requirements would lead to hundreds of thousands of state jobs and scribble losses. Opposite,” said Leighon Ku, principal author and director of the Health Policies Research Center and Professor of Health Policies and Management of the Gwu Institute Public Health School of Public Health.

These comments were Eco by Sara R. Collins, Senior Academic of Commonwealth Fund and Vice President of Coverage and Access of Medical Care.

“Work requirements do not increase employment: they trigger coverage losses,” Collins said in a statement. “They push the people of Medicaid not because they are not working, but because” navigate the complex paperwork and the reports of reports. The result is more Americans without insurance and greater tension in families and doctors, clinics and hospitals and hospitals, hospitals, hospitals and hospitals. “

Photo: Bill Oxford, Getty Images

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