Don't Cut Medicaid for Working People with Disabilities

New Yorkers for Accessible Health Coverage learned last week that a little noticed provision in the Chairman’s Mark of the Senate Finance America’s Healthy Future Act of 2009 would jeopardize the ability of people with disabilities to work and keep critical health care coverage. It would eliminate Medicaid income disregards which are not attached to the receipt of cash assistance.

In New York we have Medicaid Buy-in for Working People with Disabilities, which allows people to keep their Medicaid coverage for things that are absolutely necessary to maintain their health and functioning -- such as durable medical equipment, hearing aids, medical supplies, and home care – things which they cannot necessarily get through Medicare or will be able to get through a Health Care Exchange. These people have their income calculated using “SSI related” earned income disregards. Current law does not permit states to use different rules to calculate income if any individual might lose eligibility as a result. The Baucus proposal would mandate that thousands of working New Yorkers with disabilities lose their eligibility for Medicaid unless they stop working or work only part time.

Because people with disabilities cannot go without the health care they receive through the Medicaid program, we do not believe that eliminating these disregards will significantly decrease the number of people receiving Medicaid or save the government a sizeable amount of money, but it will decrease the opportunity for people with disabilities to have more meaningful productive lives.

Please call Senators Baucus, Schumer, and Gillibrand today and ask them to remove the language in the Chairman’s Mark which would eliminate Medicaid income disregards effective January 1, 2014.

Use the toll free number 1-800-828-0498 to reach the Capitol Switchboard and ask to be put through to the offices of Senator Baucus, Senator Schumer, and Senator Gillibrand.

The elimination of income disregards will also impact an untold number of other “dual eligibles” who are eligible for both Medicare and Medicaid. We are continuing to review the this proposal’s impacts and others and will be raising this issue with our congressional delegation. The provision is not in H.R. 3200, the House health care reform bill. Our position paper on the issue is attached.