Iowa House Bill HSB241

Iowa 2025-2026 Regular Session

• Introduced: 2/20/25
• Refer: 2/20/25

Caption

A bill for an act relating to the establishment of the work without worry program under the medical assistance program for employed individuals with disabilities, and including effective date provisions.(See HF 905.)

Impact

The legislation intends to make significant changes to the existing Medicaid framework by eliminating certain eligibility restrictions tied to income and resources for the employed disabled individuals. Specifically, it removes the income and resource tests that often act as barriers for people with disabilities who wish to work. The bill will instead allow individuals receiving Supplemental Security Income to automatically qualify for the program, therefore simplifying the application process and enabling more people to gain access to support services. The program is also designed to ensure coordination of benefits with employer-provided health coverage.

Summary

House Study Bill 241, also referred to as HSB241, proposes the establishment of a 'Work Without Worry' program within Iowa's medical assistance program specifically aimed at employed individuals with disabilities. This bill aims to expand access to healthcare coverage for this demographic by alleviating current restrictions related to income and resources. Under the proposed program, eligibility will be broadened so that individuals who may have previously been restricted due to their earnings can still access essential health services without the fear of losing their Medicaid benefits.

Contention

During discussions, points of contention may arise regarding the implications of the program on the state’s Medicaid budget and the potential for increased enrollment of individuals with disabilities. Proponents argue the bill promotes inclusivity and encourages employment among disabled individuals by providing necessary healthcare coverage, leading to increased self-sufficiency. On the other hand, opponents may express concerns about the financial impact on state resources and the perceived risk of creating an overly permissive system that might strain public assistance programs.