Utah Joint Resolution Would Eliminate Medicaid Qualified Asset Tests

Main Category: Medicare / Medicaid / SCHIP
Article Date: 16 Feb 2009 - 1:00 PDT

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Utah state Rep. Rebecca Chavez-Houck (D) is sponsoring a joint resolution calling for the elimination of Medicaid's qualified asset tests, the Salt Lake Tribune reports. Utah is one of four states that use the asset tests to determine Medicaid eligibility. The tests make Medicaid applicants ineligible for coverage if they have assets such as bank accounts or valuable furniture. According to Chavez-Houck, the tests provide "a disincentive for families to try to get out of poverty."

Lincoln Nehring, Medicaid director for the Utah Health Policy Project, said about one-third of children enrolled in CHIP, which does not have asset tests, live below the federal poverty level. Nehring said that those children "really should be in Medicaid because Medicaid offers a richer benefit package with less costs."

State records from the last 12 months showed that 3,831 families were denied Medicaid coverage based on their assets. A state Department of Health study in October 2005 found that an additional 8,510 residents would be eligible for Medicaid if the tests were eliminated, which would cost the state an extra $50 million to $52 million.

Nehring said, "Economic times are hard and while philosophically [eliminating the asset tests] might be the right thing to do, the state just can't afford to move that direction this year." However, he said, "We need to recognize what needs to change -- and removing the asset test is right at the top of the list" (Rosetta, Salt Lake Tribune, 2/11).

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