EXPERT EVALUATION

The U.S. House narrowly approved a measure early Thursday that aims to reduce taxes and diminish Medicaid, a health care program that offers extensive services to low-income adults and children. The next step is the Senate.

While significant modifications may arise within the comprehensive bill, it’s important to recognize what was passed by the GOP-controlled House upon the request of President Donald Trump. Donald Moynihan and Pamela Herd, professors at the Ford School of Public Policy at the University of Michigan, provide their perspectives:

“The proposed legislation employs administrative hurdles to achieve unpopular policy aims, primary among which are work mandates for Medicaid.

“The legislators and officials from the Trump administration contend that work mandates are effective for Medicaid. They are unequivocally mistaken.

“They do operate—though only if your objective is to limit access to services, while predominantly failing to enhance labor market participation. These policies are especially harmful to at-risk groups, including individuals already in poor health.

“If you consider Medicaid beneficiaries who are already employed—and those excused from work mandates due to disabilities or caregiving duties—almost no one ought to lose coverage. However, when Arkansas implemented work requirements in 2018, nearly all individuals who lost coverage had satisfied the prerequisites. They simply failed to navigate the documentation needed to demonstrate it.

“In addition to work mandates, the House suggests further administrative challenges, such as co-payments and more frequent renewals, which we know will remove eligible participants from the program.

“Ultimately, the outcome of this agenda would be a dysfunctional government aimed at financing tax reductions.”

Contact: Moynihan ([email protected]), Herd ([email protected])