Federal incentives and the future of Medicaid

The federal government aims to control how states administer Medicaid, and high Medicaid eligibility is favorable for both the federal and state governments. While the Biden administration did not want states to end the maintenance of effort, Congress intervened and passed a law allowing states to review Medicaid roles for eligibility. However, Medicaid's original purpose for low-income individuals and those with special needs has expanded, burdening taxpayers and limiting access to care. With low unemployment rates and more job opportunities, many Medicaid enrollees may no longer meet the income thresholds, leading to potential Medicaid determinations of ineligibility. The administration's focus on government-run healthcare programs and efforts to limit alternatives like short-term healthcare plans raise concerns about limited choices and innovation in the healthcare sector.