A similar version of this Health Alert appeared at Forbes.
Utah Governor Gary Herbert and North Carolina Governor Pat McCrory have asked President Obama to allow them to include work requirements in their Medicaid programs. Work requirements were critical to the success of welfare reform in 1996 and would also change Medicaid from a dependency-trap to a true safety net. The best way to achieve it would be through legislation, not relying on executive action.
A new study I’ve written for the National Center for Policy Analysis explains how including Medicaid and the State Children’s Health Insurance Program (CHIP) as part of safety-net reform, instead of keeping health care in its own silo, would greatly improve the federal welfare state for both recipients and taxpayers. Fortunately, House Ways and Means Committee Chairman Paul Ryan (R-Wis.) has proposed reforms to the federal safety net that could include Medicaid and CHIP.
Mr. Ryan’s proposal, Expanding Opportunity in America, focuses on the Earned Income Tax Credit (EITC), housing and home-energy assistance, education assistance, food stamps (SNAP) and criminal sentencing reform. Ryan’s proposal hinges on the Opportunity Grant (OG). States would apply for OGs that would roll some or all of the federal spending on individuals and families in poverty into one lump sum for distribution to the states. States, civil society organizations and recipients themselves would all be responsible for transitioning recipients out of dependency and into self-reliance.
Ryan is looking back to the success of the 1996 welfare reform signed by a reluctant President Clinton after a successful campaign by House Speaker Newt Gingrich. Ten years after the reform, it was widely recognized as a significant success, even by the mainstream media. Medicaid, unfortunately, was never reformed in 1996.
There are very good reasons to reform all of these safety-net programs comprehensively, in one fell swoop.