The administration has recognized a potential issue with SNAP and Medicaid enrollment. ACA could increase food stamp rolls

Republicans have another reason to hate Obamacare: It could grow the number of people on food stamps.

The Obama administration has ordered a study to determine whether the Affordable Care Act, by increasing the number of people eligible for Medicaid, will also increase the number of people enrolled in the Supplemental Nutrition Assistance Program based on how states enroll people.


The outcome of the study could show an increase of 3 percent to 5 percent in food stamp recipients in some states from people who were already eligible for SNAP benefits but had not enrolled in the program — which could translate to millions or even billions more in federal spending, Greg Mills, a senior fellow at the Urban Institute who is conducting the study, told POLITICO.

“So in percentage terms, it’s not going to be very large, but we’re talking about a very large program,” said Mills, who is investigating the effects of the health care law on SNAP on behalf of the Department of Agriculture’s Food Nutrition Service, the agency that monitors food stamps.

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“It would have a substantial financial effect.”

The likely increase would come from a greater overlap in eligibility between Medicaid under Obamacare and SNAP.

Nearly all uninsured people now covered by the Medicaid expansion are also eligible for food stamps, but they are not all enrolled. Depending on how states put residents in these programs — many have integrated the process for SNAP and Medicaid — eligible food stamp recipients could be more easily targeted and encouraged to apply.

Talk of a potential increase in food stamp recipients comes as House Republicans targeting SNAP insist it has become too bloated. House GOP members on the farm bill conference committee, already eager to make SNAP cuts, are ready to seize on the latest development during the negotiations that look to resume soon after last week’s opening meeting.

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“It’s troubling that three years after passage, we’re still learning about new unexpected consequences from Obamacare.” wrote Rep. Randy Neugebauer (R-Texas), who sponsored a bill to reform SNAP in the House, in an email to POLITICO.

“I’d be very interested to see a report on the interaction between SNAP and Obamacare,” Neugebauer wrote. “As a member of the ag committee, we’ve been dealing with the interaction between SNAP and other federal programs for years and I’ve been a strong advocate for reforming the categorical eligibility provisions that allow individuals to receive benefits when they don’t otherwise qualify for SNAP.”

During the negotiations, Neugebauer and other House Republicans will be defending the $40 billion in cuts over 10 years that are now contained in the House version of the farm bill, significantly more than the $4 billion the Senate’s farm bill would cut over the same period, during the negotiations.

Making the issue more complicated is the $5 billion reduction in the program this fiscal year that went into effect last week when the additional SNAP dollars provided temporarily through the 2009 stimulus package expired.

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Eligibility for both — the new standard for Medicaid under Obamacare and SNAP — is based on what percentage of the poverty line the individual or household falls under. For Medicaid, that’s individuals or families with incomes at or below 133 percent of the poverty level.

SNAP data has typically been used by states to enroll residents in other programs, but with an influx of uninsured people now covered by the federal Medicaid expansion in 25 states — nearly all of whom are also eligible for SNAP — states can also proactively seek out eligible food stamp recipients through the Medicaid enrollment process.

In 2010, nationally, about 75 percent of eligible SNAP recipients actually enrolled in the program. A breakdown of the data shows that percentage was significantly lower in some states: Only about half of eligible SNAP recipients in states like California, Wyoming and New Jersey actually enrolled.

The remaining large number of potential food stamp recipients might now become more likely to be enrolled, especially since about 40 states already have integrated their process for applying for Medicaid and SNAP, researcher Mills said. Some states can even simplify enrollment by things like filling out most of the paperwork for potential SNAP recipients based on their Medicaid application.

“This is a favorable byproduct of the Affordable Care Act, bringing people into federal programs which they are already eligible for,” he said.

The Obama administration has recognized the potential issue.

Noting that the Affordable Care Act “could potentially have a profound impact on SNAP participation,” the Agriculture Department announced its plans to study the possible development last week in a document submitted to the Office of Management and Budget for review.

The department says it wants to look into state coordination of SNAP and Medicaid enrollment and renewal, the process for directing Medicaid applicants to SNAP and the number of SNAP applications.

Lawmakers who have advocated for SNAP stressed that the increase in food stamp recipients would result from people who should already have been in the program.

“If people are eligible, they ought to be enrolled in it, so that’s a good thing,” said Rep. Jim McGovern (D-Mass.), a farm bill conferee who has stated that he would not vote for a bill that includes significant cuts to SNAP, in a phone interview with POLITICO.

McGovern said that though the connection between SNAP and Obamacare has not yet come up in conference, he wouldn’t be surprised if House Republicans on the committee were to bring it up.

“It’s hard to demonize poor people more than the people who oppose SNAP and also the Affordable Care Act already have, but I’m sure they will continue to pile on.”

Groups that advocate for food stamps and other programs also said that given the eligibility requirements for Medicaid and SNAP, cross-program coordination, which has been implemented in several Republican states, actually saves money in the long run.

“By definition, if you look at the income, there’s huge overlap between the programs,” said Bruce Lesley, president of First Focus, an advocacy group for children and families. “More and more data-sharing only makes sense because why would you waste time and money?”