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Center for Workers with Disabilities. (2002). Building work incentives using Section 1902(r)(2) of the Medicaid statute. (Report No. 02-2). Washington, D.C.: Author.
Abstract
Section 1902(r)(2) of the federal Medicaid statute allows states to use more flexible rules in calculating financial eligibility for state Medicaid programs for a broad range of working and non-working recipients. By permitting more generous disregards of income and resources, states can extend Medicaid coverage to those who would otherwise be ineligible, and can allow working recipients to keep more of their monthly earnings and retain savings accrued from earnings without losing eligibility for Medicaid. Section 1902(r)(2) can be used to benefit numerous categories of Medicaid eligibles, including working recipients participating in a state Medicaid Buy-In (MBI) program, individuals formerly participating in MBI, and those who are not MBI participants.
This report outlines the provisions of Section 1902(r)(2), the categories of individuals to whom states have extended Medicaid coverage through this provision, and, specifically, its use to provide work incentives to participants who would otherwise be ineligible for Medicaid or who would be forced to spend higher amounts of their earnings towards their medical care.
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