South Carolina received federal approval Thursday to impose work requirements for Medicaid beneficiaries, fulfilling a demand of conservatives.
The policy is particularly controversial because, unlike other states, South Carolina is not looking to couple the work requirements with an expansion of Medicaid as authorized by Obamacare. Instead, the state will pursue a more modest extension of benefits to poor parents.
“South Carolina’s economy is booming, wages are up, and our unemployment rate is at an all-time low at 2.6%,” Gov. Henry McMaster said in announcing that the federal government had approved the plan, speaking alongside Seema Verma, Centers for Medicare and Medicaid Services administrator. “Competition for workers is fierce, and businesses are struggling to fill vacancies. In this economy, there is no excuse for the able-bodied not to be working.”
The state will expand eligibility by increasing the qualifying income threshold from its current requirement of 67% of the federal poverty line to 100% of the poverty line.
South Carolinians eligible for Medicaid benefits, now all those earning up to the federal poverty line, will be required to work for at least 80 hours per month, be a full-time student, or consistently take part in public service, including volunteering with charitable corporations. The state’s Health and Human Services Department sought a “state-specific solution,” as opposed to the “all-or-nothing” plan provided for under Obamacare, to incentivize more South Carolinians to seek employment.
The program will allow exemptions for those who are pregnant, have disabilities, are the primary caregiver to a child, or receive treatment for substance abuse problems. The application also stipulates that new mothers may receive coverage from 60 days postpartum and up to one year.
Liberal politicians have decried work requirements as inflicting undue burdens and unnecessary paperwork on people who need government assistance.
Sen. Ron Wyden, an Oregon Democrat, slammed the proposal soon after the Trump administration approved it: “South Carolina already has one of the strictest Medicaid programs in the country. Thanks to Trump, new and existing parents stand to lose their health coverage unless they hack their way through arbitrary and slapdash paperwork requirements.”
This year, an Obama-appointed federal judge blocked plans to enact work requirements in Kentucky, Arkansas, and New Hampshire.
Approval of South Carolina’s program will remain effective through Nov. 30, 2024, at which point South Carolina can apply for an extension.
