On Friday, the state of Indiana was granted the approval of the federal government to now require adult recipients of Medicaid in the state by way of the Affordable Care Act to be required to work. Indiana is the second state in the country to add this stipulation.
Individuals participating in Medicaid that fail to submit paperwork demonstrating continued eligibility for the program in a timely manner will lose benefits and not be able to reapply for three months.
More than 91,000 Medicaid enrollees in the state have had their benefits terminated for failing to complete the process for redetermination of eligibility requirements since November of 2015. To remain eligible for the process applicants must provide family size and proof of income in addition to other information in order to determine whether or not they still qualify for Medicaid coverage.
Before the implementation of these latest rules, applicants could reapply anytime for benefits. Officials for the state report that approximately one-half of the Medicaid participants that fail to complete the re-eligibility process are in fact still eligible for the program.
This new cause for Medicaid lockouts is an additional one the state had in place already in response to individuals that did not pay monthly premiums while having an income of more than $12,200 for a single individual. Lockouts for these individuals are triggered upon failure to pay premiums for two consecutive months. Data provided by the state of Indiana showed that in the first two years of this experiment 10,000 Medicaid recipients had their benefits terminated.