Medicaid Work Requirements and Poverty: Losing Coverage Could Cost Families over $1,000 per Year, Throwing Many into Poverty

For many low-income households, losing Medicaid coverage means entering poverty. The current administration has called on states to impose work requirements on Medicaid beneficiaries. Last year, three states began requiring documentation of employment for Medicaid eligibility and seven more states have similar proposals pending. The impact of such legislation goes beyond the often critically important loss of healthcare. Loss of Medicaid means an increase in medical-out-of-pocket spending, and those families subject to increased medical costs are vulnerable to falling into poverty. In our latest brief, we simulate the impact of work requirements on medical expenses and poverty. We find that close to 3 million individuals would lose coverage, annual medical expenses could rise by over $1,000 per family losing coverage, and over 130,000 Americans would enter poverty if work requirements were imposed on Medicaid recipients.