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8 million Americans at risk of losing Medicaid coverage under Trump's tax bill

Support grows among Americans for work requirements in Medicaid, but concerns arise as past implementations led to significant coverage losses.
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The push to pass President Donald Trump's mega tax bill continues in Washington.

A vote in the House of Representatives could happen as soon as today. However, to pay for the tax changes—such as eliminating taxes on tips and establishing new savings accounts for newborns—Republicans are looking at altering the rules for Medicaid, including implementing new work requirements.

More than 70 million Americans are on a form of Medicaid, according to recent government statistics.

As negotiations—and likely votes—continue on Capitol Hill this week, debate persists over the bill's "community engagement requirement." This provision would require many Medicaid recipients to work, volunteer, or engage in educational activities for a minimum number of hours each month. One proposal calls for at least 80 hours of such activities monthly.

Medicaid recipients would have to verify their activities with the federal government.

Exemptions would be allowed based on age and life events, such as certain medical conditions.

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Republican Rep. Don Bacon recently told Scripps News why this requirement is crucial for conservatives. "People think if you are an able-bodied adult without children, you should be looking for work," he said.

According to a recent poll by the Kaiser Family Foundation, 62% of Americans support the idea of work requirements for Medicaid. At the same time, additional polling from Kaiser found that around 64% of Medicaid recipients already have a full- or part-time job, while 28% reported being unable to work due to illness, caregiving, or education. Eight percent reported being retired, unable to find work, or for other reasons.

Some states have attempted to implement work requirements in the past with Medicaid. What did we learn from those efforts?

"Arkansas was the first to try this with Medicaid in 2018. In the first six months of that program, one in four people who were subject to that program lost their coverage," said Laura Harker with the Center for Budget and Policy Priorities.

The nonpartisan Congressional Budget Office estimates more than 8 million Americans may lose health insurance if this Medicaid change, along with others, becomes law through this tax bill.

RELATED STORY | Senate unanimously approves bill to eliminate taxes on tips

The changes could save American taxpayers between $40 billion and $50 billion per year.