Arizona could implement work requirements for Medicaid recipients
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Major changes at both the state and federal levels may be coming to Medicaid, the national, low-income health insurance system.
Why it matters: One in five Arizonans rely on Medicaid or the associated Children's Health Insurance Program for insurance coverage.
The big picture: President Trump last week told Fox News that his administration would not touch Medicaid, but the following day endorsed a U.S. House budget proposal that would cut $880 million from the Energy and Commerce Committee, which oversees Medicaid.
- Though details of the proposed cuts were not released, it's unlikely the committee could hit that number without major changes to Medicaid eligibility, Axios Pro health care reporter Peter Sullivan reported.
Separately, the state's Medicaid agency, the Arizona Health Care Cost Containment System (AHCCCS), is asking the federal government to allow it to implement work requirements and a lifetime cap on benefit recipients.
- If approved, able-bodied AHCCCS recipients would have to work or attend school at least 20 hours per week and could receive health coverage for a maximum of five years.
Between the lines: AHCCCS is required to make these requests of the federal government each year under a 2015 state law pushed by Republicans who wanted to disincentivize use of the program, The Arizona Republic reported.
- The state's request under the first Trump administration was approved but never took effect because of legal challenges and the COVID pandemic.
- The Biden administration rejected Medicaid work requirements in 2021.
What we're watching: With Trump back in office, it's much more likely the work requirement and lifetime cap will be implemented in Arizona for the first time.