GAIN Act of 2024 Guaranteed Additional Income for families in Need Act of 2024
Impact
If enacted, HB 8697 would establish a five-year project that requires the Secretary to distribute a minimum of $500 per month to eligible Medicaid participants through various local government entities. These entities could include counties, municipalities, and other nonprofit organizations. The initiative aims to alleviate the financial burdens that often contribute to health issues among low-income individuals by providing them with consistent monetary support, which is not considered taxable income under federal law.
Summary
House Bill 8697, known as the Guaranteed Additional Income for Families in Need Act of 2024 (GAIN Act), aims to direct the Secretary of Health and Human Services to implement a demonstration project to evaluate the impact of a guaranteed monthly income on the health of individuals enrolled in the Medicaid program. This initiative is based on research suggesting that income instability negatively affects physical and mental health outcomes, as evidenced by pilot programs like the one in Stockton, California, where participants reported improved health metrics after receiving financial assistance.
Contention
The proposed bill may face opposition regarding the implications of such a guaranteed income system on existing welfare and healthcare programs. Critics could argue that such payments might disincentivize work, complicating the socio-economic landscape for Medicaid recipients. Furthermore, there could be concerns about the administrative costs associated with implementing the program, as the bill stipulates that no more than 20% of the funds can be spent on administration and outreach, raising questions about effective allocation and impact measurement.