The Buckeye Institute recently submitted testimony to the Ohio Senate Medicaid Committee, expressing support for a proposed Medicaid waiver. The waiver aims to enhance program integrity while promoting economic stability and improved health outcomes.
Rea S. Hederman Jr., vice president of policy at The Buckeye Institute, emphasized that Medicaid was originally intended for those unlikely to be employed, such as expectant mothers, the elderly, disabled adults, and children. He noted that “for almost 50 years, the government expected healthy adults to be in the labor force working or looking for work.” This changed with the Affordable Care Act in 2010 under President Obama, which expanded Medicaid and increased its costs.
Ohio’s proposed waiver seeks to ensure Medicaid’s integrity by requiring healthy adults to either be employed, attend school, or participate in employment training programs. Hederman cited various studies indicating that expanding Medicaid has impacted workforce participation negatively. He mentioned research by the Congressional Budget Office and academic journals showing reduced work effort due to expanded eligibility.
Hederman also referenced The Buckeye Institute’s findings that work requirement waivers could significantly increase lifetime earnings for enrollees. These requirements could lead individuals towards full-time employment and private coverage transition over time.
In his detailed testimony before the committee members Chair Romanchuk, Vice Chair Huffman, Ranking Member Liston among others, Hederman reiterated that implementing work requirements would incentivize human capital investment through increased labor market participation.
He concluded by stating that the waiver aligns with objectives of promoting economic stability and financial independence without additional budget implications.
