We’re taking a look at the latest on legislation at the federal level and in Lansing that could add work requirements for recipients of the Supplemental Nutrition Assistance Program (SNAP) and recipients of Medicaid.

Fast facts about employment for Medicaid and SNAP in Michigan:

• Crain’s Detroit Business reports, “About 60 percent of Michigan's nondisabled adult Medicaid enrollees are working, and 75 percent live in a working family, according to the nonpartisan Kaiser Family Foundation.”

• According to the latest data shared by MLive, nearly 75 percent of Michigan SNAP households are working and earning income. The breakdown shows 49 percent of Michigan SNAP households had one worker in the home and 26 percent had two or more workers in the household.

The Michigan League for Public Policy (MLPP) shared in recent briefs some of the barriers that new work requirements could create for recipients of both SNAP and Medicaid in Michigan, causing them to lose their benefits.

This includes:

• For those who are working their work hours may fluctuate and could fall below the required threshold.

• They’re between jobs but actively looking for work.

• New paperwork requirements could create a barrier for some to navigate and complete.

• They’re actually exempt but don’t understand they qualify for an exemption or have difficulty providing the required documentation.

The Farm Bill and SNAP

The Farm Bill currently under consideration in D.C. would create new stricter work requirements for SNAP recipients which the Congressional Budget Office (CBO) estimates could lead to 1.2 million adults losing their benefits.

The urgency to protect SNAP has organizations around Michigan, including the United Way for Southeastern Michigan, asking the public to protect SNAP by calling on their lawmakers to reject the House version of the Farm Bill.

A new Center on Budget and Policy Priorities (CBPP) brief highlights the CBO’s recent analysis of the House Agriculture Committee’s Farm Bill.

Highlights of CBPP’s brief:

• About 1.2 million adults would lose SNAP benefits due to the proposed stricter work requirements. About 62 percent of those adults have children living in their home.

•  The CBO estimates that only 2 percent of those newly subject to stricter work requirements would meet the requirement by participating in a training program. That amounts to only about 110,000 people. By contrast, CBO assumes that roughly 2 million people, or 24 percent of the group would lose SNAP.

• The work requirements would go into effect as soon as 2021 but it’s likely states would need more than two years to create new employment training and opportunities.

• The CBO estimates implementing this change and tracking the work status of recipients would lead to increased costs for the state and $7.7 billion in federal administrative costs.

Nearly one in seven Michigan residents receive SNAP benefits.

Here’s a breakdown of SNAP/food assistance recipients:

• Statewide: 14.7 percent of Michigan residents receive food stamps or SNAP assistance

• Northern Michigan: 15.6 percent receive food assistance

• Mid-Michigan: 14.9 percent receive food assistance

• West Michigan: 13.9 percent receive food assistance

• Southeast Michigan: 11.6 percent receive food assistance

Medicaid Work Requirements Update

Meanwhile in Lansing, legislation that would add work requirements for Medicaid recipients in Michigan is now before the House and could go for a vote before lawmakers break for recess in June. It passed in the Senate a couple of weeks ago.

As CMF reported, the legislation in its current form would require Medicaid recipients to work about 29 hours per week and include audits to see if recipients are meeting work requirements.

Last month we provided a deep dive into the data of Medicaid recipients in Michigan who are working and the potential effects of the work requirements on the Healthy Michigan Plan (HMP). Check out the data.

HMP provides about 672,000 low-income residents access to health care. View the number of recipients in your county. If this legislation is enacted, the House Fiscal Agency estimates that up to 105,000 Michigan residents could lose their health care coverage.

MLPP shares that the administrative costs to the state to implement this work requirement program range from $20 to $30 million.

The Michigan Health and Hospital Association (MHA) submitted written testimony to the House Appropriations Committee opposing the legislation. 

The governor is in talks with lawmakers to see if changes can be made to the bill.

Want more?

Take a deeper dive into our previous coverage: USDA Wants to Hear from You About SNAP and Medicaid Work Requirements Under Consideration.