With the passing of the Affordable Care Act (ACA), millions of working Americans became newly eligible for Medicaid. While this was an under-reported dynamic of the law, it was one of the most dramatic changes to the landscape of American healthcare access in recent history. Many uninsured workers with incomes that previously disqualified them from Medicaid gained access to its coverage.

Additionally, and even less understood, many others who had been straining their monthly budgets to purchase coverage via their employer’s plan could now enroll in Medicaid and subsequently drop their employer-sponsored insurance.

A Real-life Example

Imagine a single parent earning $35,000 a year who can now stop paying hundreds of dollars a month for private insurance, while maintaining robust coverage with no premiums or deductibles. For that household, the Medicaid expansion built into the ACA was an incredible new opportunity—if only they knew about it.

The Role of Employers

This is where employers and group insurance brokers come in. Just as you can imagine the power of switching from an employer plan to Medicaid for the single parent earning $35k, you can also imagine the day-to-day strain on that person’s time and mental bandwidth. They are likely focused on getting from Monday to Friday, keeping food on the table, and ensuring their kids are safe. They may not be attuned to the public policy updates that could open the path to a better situation.

But their employer also has a significant stake in them getting Medicaid.

Benefits to Employers

Medicaid enrollment is a Qualifying Life Event that enables the employee to waive the company insurance, which then reduces employer premium contribution costs and/or claims risks. Indeed, one of the intentions behind the ACA’s Medicaid expansion was to make insurance accessible to everyone without placing the burden fully on the shoulders of businesses.

A Win-Win Solution

An employer focused on both their bottom line and their employees’ well-being can provide assistance to their low- and middle-income staff in assessing their eligibility for Medicaid and offer enrollment support to those who need it. It’s an underused way to help employees get covered, creating a true win-win for workers and companies alike.