Lawmakers introduced legislation yesterday designed to reverse a provision in the Affordable Care Act (ACA) that will allow middle-class early retirees to qualify for free Medicaid benefits.
When the ACA goes into effect in 2014, a married couple earning up to $64,000 per year will be eligible for Medicaid because Social Security will no longer be counted as income when calculating eligibility.
[See also: HHS offers states advice on achieving Medicaid savings]
Senator Mike Enzi of Wyoming, senior Republican on the Health, Education, Labor and Pension committee, and other lawmakers introduced legislation intended to close this gap in the ACA rules by reversing the law and requiring Social Security income to be counted when determining Medicaid eligibility. According to the Congressional Budget Office, this fix would save $13 billion without adding to the number of uninsured people.
"This proposal represents an area of savings where there is a rare opportunity for agreement on both sides of the aisle," said Enzi.
Senator Ben Nelson (D-Neb.) also introduced a bill yesterday to repeal the law. "Middle-class people can afford other options, and my legislation fixes a glitch in the healthcare law to keep Medicaid focused on lower-income Americans," Nelson said in a press release.
Rep. Diane Black (R-Tenn.) said she would introduce companion legislation in the House later this week.