Blackburn, Young, Romney unveil GOP bill to update certain Medicaid waivers

U.S. Sens. Marsha Blackburn (R-TN), Todd Young (R-IN), and Mitt Romney (R-UT) recently joined several other Republicans to introduce legislation that would authorize a framework to allow innovation under Section 1115 Medicaid demonstration project waivers.

Specifically, the Let States Innovate Under Medicaid Act, S. 3332, sponsored on Dec. 7 by U.S. Sen. Mike Braun (R-IN), would include “work or community engagement requirements” as an acceptable practice that furthers the objectives of the Medicaid program, according to a bill summary provided by the lawmakers.

In turn, the Centers for Medicare & Medicaid Services (CMS) administrator would be prohibited from denying a 1115 waiver on the basis that work or community engagement requirements do not further the objectives of the Medicaid program, the summary says.

“The Biden administration’s policies are driven by top-down federal government overreach, and their approach to Medicaid will only further this agenda,” said Sen. Blackburn, the lead original cosponsor of S. 3332. “Their policies will result in less flexibility for states like Tennessee to care for the most vulnerable populations including the poor and people with disabilities.”

Introduction of the bill follows action in February by the Biden administration that directed CMS to withdraw work requirement waiver authorities in several states that had either been previously approved, or had a pending application, on the basis that work or community engagement requirements do not further the objectives of the Medicaid program, according to information provided by the senators.

CMS continues to review some states’ work requirement waivers, but has already withdrawn waiver authorities in nine states. Other states have voluntarily withdrawn work requirements from their waiver applications or have postponed the implementation of work requirements because of the uncertainty concerning Medicaid work and community engagement programs, the information says.

“Medicaid should ideally be available as a temporary option, with a goal of preparing individuals for a life of dignity in the workforce. Work and community engagement activities, such as those that Indiana previously had in place, are designed to improve quality of life over the long term and help individuals transition to full employment,” Sen. Young said. “CMS’s decision earlier this year to revoke Indiana’s ability to set these expectations for some Medicaid recipients treats work as a punishment and discourages efforts to transition to self-reliance.”

If enacted, S. 3332 would “allow states the opportunity to innovate under the Medicaid program, with the objective of preparing individuals for a life of independence in the workforce,” said Sen. Young.

“This legislation will give states like Utah more freedom and flexibility to best manage their Medicaid program, help people seek opportunities for community engagement, and continue to provide health coverage to those who depend on it,” added Sen. Romney.

S. 3332 has been referred for consideration to the U.S. Senate Finance Committee.