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Study: Medicaid law hurts citizens, states

WASHINGTON, Feb. 2 (UPI) -- A new requirement that U.S. states verify the citizenship of most Medicaid beneficiaries hurts both states and patients, a new study says.

Previously, when U.S. citizens applied for the program, which provides health coverage for low-income and disabled Americans, they were required only to check a box on enrollment forms indicating their citizenship. If there was an irregularity, state authorities would investigate.

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A new requirement from the federal government -- which splits the cost of the program with states -- asks nearly all old and new beneficiaries to prove they are citizens, and only a few forms of documentation are acceptable.

But complying with the new requirement has been costly to states and deprived eligible U.S. citizens of coverage, according to a study released Friday by the Center on Budget and Policy Priorities, a Washington-based think tank.

Medicaid enrollment dropped off precipitously in Iowa, Kansas, Louisiana, New Hampshire, Virginia and Wisconsin, the six states studied, because many beneficiaries were unable to produce acceptable documents.

Wisconsin -- which has the most sophisticated enrollment-tracking system in place -- found that 14,000 Medicaid-eligible individuals were either denied Medicaid or lost coverage between August and December as a result of the new rule.

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All six states also projected high administrative costs from the requirement, which asks them to examine documents from each applicant. Illinois, for example, projects up to $19 million in increased staffing costs in the first year.

Proponents of the requirement say it is reasonable and will prevent ineligible applicants from unlawfully accessing Medicaid.

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