Michigan Sends Medicaid Request, With Work Requirements and Premiums, to Trump Administration

Gov. Rick Snyder on Friday signed a bill requiring able-bodied recipients of the state's Healthy Michigan Medicaid program to work or risk losing health care coverage.

The Trump administration opened the door to such a change, approving a handful of state waivers to put Medicaid work requirements in place. Michigan will seek such a waiver under the new law.

The new law affects Michigan's 670,000 Healthy Michigan Plan recipients covered under the state's Medicaid expansion. It requires able-bodied recipients to work but provides exemptions for people including pregnant mothers, people with disabilities, caretakers of disabled dependents, caretakers of children under age 6 and individuals who have a medical condition that results in a work limitation.

The House Fiscal Agency estimates that the net fiscal effect of the bill will be a savings of between $7 million and $22 million, mainly due to a reduced Medicaid caseload.

The bill changed significantly throughout the legislative process. As introduced, it would have required Medicaid recipients to work 30 hours per week. The final version requires an average of 20 hours of work per week, or 80 hours per month. Recipients would need to comply with this for at least nine months per year.

It also requires people with income from 100 to 133 percent of poverty level who are on Medicaid for more tahn 48 months to undergo a health risk assessment and pay a premium of 5 percent.

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