We have a dependency crisis in Minnesota, and it's getting worse every year. If political leaders decide to ignore this problem and don't act soon, many of our severely and permanently disabled Minnesotans, along with many elderly citizens and children, won't receive the benefits they deserve. It's a simple equation: Every tax dollar spent on Medicaid/Medical Assistance (MA) benefits for able-bodied adults is a dollar that can't go to the truly needy. There's a simple solution that is working in various states around the country that is being maligned in Minnesota by those who wish to preserve the welfare status quo.
How and when did 1 in 5 Minnesotans come to rely on Medicaid for their health insurance?
One of the most important changes in how low-income Americans access health insurance occurred in 2010, when Congress passed and President Barack Obama signed into law the Affordable Care Act (ACA). Tucked away in that massive bill was an important clause that allowed states to expand Medicaid, the combined federal and state health insurance program that provides insurance to nearly 60 million low-income Americans. We were one of the first states to "expand Medicaid" coverage in 2013.
Today, there are more than 324,000 able-bodied Minnesotans enrolled in Medicaid. Of those, 181,000 are new able-bodied enrollees who became eligible under the 2013 expansion. This number of enrollees is more than any actuary or politician predicted would ever sign up for this program.
This expansion comes at a price: Starting in 2020, Minnesota taxpayers will receive a bill from the federal government for 10 percent of the total cost of this program. As the federal government begins to require state taxpayers to pay more and more for this program, other state programs will begin to be crowded out in their requests for funding, including key budget items such as K-12 education and transportation.
Some state government leaders are looking ahead and seeking solutions to this problem now. One proposal under consideration is a modest work requirement that would enable able-bodied Medicaid recipients to transition into profitable work and private health insurance. This would not apply to those medically disabled, those with dependent children or the elderly. Similar plans have been enacted by several other states, all of which report that this transition to work has garnered greater income for Medicaid recipients that surpassed the benefits they were receiving while on welfare.
I know of no one who would dispute the importance of a government safety net for the truly needy. Yet those who seek to preserve the status quo seek to distract us from the goal of preserving benefits for those permanently disabled individuals by spreading myths and falsehoods about the pending solutions to a tough problem.
For example, some say that "most adult nondisabled MA beneficiaries already work." Yet, according to a federal government analysis of enrollees, most enrollees do not work at all, and less than 10 percent of these enrollees work full-time jobs.