Work or lose coverage? Medicaid plan sparks concern. How are you affected?

In the heartland of America, new proposals are emerging that could reshape how public health benefits are accessed.

One state has advanced a measure that may require certain Medicaid recipients to meet work or training obligations to retain coverage.

The move reflects a broader trend as states reassess benefit eligibility in response to evolving national policy discussions. What does this mean for the future of Medicaid and your healthcare?



Iowa has recently passed a bill that could require thousands of Medicaid recipients to clock in hours at work or engage in job-training programs to maintain their health coverage.

This move joins a group of states that are reevaluating the conditions under which they provide Medicaid benefits, spurred by shifts in federal policy.

The legislation in question, Senate Bill 615, has made its way through the Iowa Senate and is poised to redefine the landscape of Medicaid eligibility.

The bill stipulates that certain beneficiaries must work a minimum of 80 hours per month or participate in state-approved job-training programs.


compressed-ian-hutchinson-P8rgDtEFn7s-unsplash.jpeg
Iowa has passed legislation that would require certain Medicaid recipients to work or participate in job-training programs to maintain their eligibility. Image source: Ian Hutchinson / Unsplash.



The rationale behind this requirement is to encourage employment among those who can work, with the belief that this will lead to self-sufficiency and reduced reliance on government assistance.

However, this policy is not without its critics.

Concerns have been raised that the work requirements could inadvertently strip away vital health coverage from individuals who are already employed but may not meet the 80-hour threshold, as well as from those who are unable to work due to disability or other circumstances.

Also read: Is your health care is at risk? Uncover what the shocking Medicaid cuts in the House budget mean for you



The Iowa Health and Wellness Plan (IHAWP), Iowa's Medicaid expansion program, currently serves around 181,000 Iowans. Around 12% are medically exempt from the work requirements.

Of these, approximately 158,000 are non-medically exempt from work requirements. The bill does provide exemptions for certain groups, including individuals under 19 or over 65, pregnant women, caretakers of children under 6, and those with disabilities.


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The new requirements come with exemptions for specific groups, including people under 19 or over 65, pregnant women, caretakers for young children, and disabled individuals. Image source: WQAD News 8 / Youtube.



Despite these exemptions, the Legislative Services Agency (LSA) estimates that as many as 32,000 Iowans could lose their Medicaid coverage due to the new work requirements.

The LSA also estimated that the bill may lower total State Medicaid expenditures by around $3.1 million in the fiscal year 2026 and by around $17.5 million in the fiscal year 2027.



The debate over Medicaid work requirements has sparked passionate responses from Iowa's political leaders.

Governor Kim Reynolds has expressed support for the bill, saying, “If you can work, you should. It's time to refocus Iowa's Medicaid program on its core population—aged, disabled, and children. Thank you to the House HHS Committee for passing the Medicaid Work Requirements bill!”

On the other hand, State Senator Zach Wahls has voiced concerns, “Work Requirements with common sense exemptions is one thing — putting health care for 180,000 Iowans into the hands of Washington DC bureaucrats is a totally different thing. Medicaid Expansion has helped 180,000 Iowans, and today, Iowa Republicans voted to put them in danger.”

As interest grows among states and federal lawmakers in adopting similar measures, work requirements tied to Medicaid could soon impact a much broader group of Americans.


Source: WQAD News 8 / Youtube.​


A recent report from the Robert Wood Johnson Foundation warns that over 5 million people could lose their Medicaid coverage if Congress moves forward with implementing these requirements in 2026.

Thus, the LSA says that Iowans could begin to lose their coverage at the beginning of 2026.

Read next: Is your health coverage safe? Why Medicaid could face major cuts

Key Takeaways
  • Iowa has passed legislation that would require certain Medicaid recipients to work or participate in job-training programs to maintain their eligibility.
  • The new requirements come with exemptions for specific groups, including people under 19 or over 65, pregnant women, caretakers for young children, and disabled individuals.
  • An estimated 32,000 Iowans could lose Medicaid coverage due to the new work requirements, while the state anticipates a reduction in Medicaid expenditures.
  • There has been a polarised response from Iowa politicians, with Governor Kim Reynolds supporting the move, while state Senator Zach Wahls expresses concern for the potential repercussions on health care for many Iowans.

How do you feel about work requirements for Medicaid? Do you have personal experiences or insights to share? Share your thoughts and experiences in the comments below!
 

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