Congressman Pat Harrigan Introduces Legislation to Close Gambling Loophole in Medicaid Work Requirements

Contact: Lexi Kranich (814) 380-4408

WASHINGTON, D.C.-Today, Congressman Pat Harrigan (NC-10) introduced the No Gambling for Medicaid Act, legislation to close a loophole that allows Medicaid recipients to meet new work requirements through gambling winnings instead of actual employment. Under current rules, someone could report $580 in gambling winnings, even if they lost more than they won, and potentially keep their coverage for another six months without working a single hour.

"If we're going to have Medicaid work requirements, I think it's reasonable to expect people to actually work," said Congressman Harrigan. "But somehow, under the current rules, you can meet that requirement by winning $580 gambling. You don't have to work a single hour, and it doesn't even matter if you lost more money than you won. Someone could even place bets on both sides of the same game, walk away with almost no losses and still satisfy the requirement. I can't imagine that was what Congress had in mind when we passed these reforms. Medicaid is funded by hardworking taxpayers, and we owe it to them to make sure the rules actually mean something. My bill fixes a loophole that never should have been there in the first place, and frankly, I don't know why this would be controversial."

"Medicaid's community engagement requirement can be a powerful tool for helping recipients move toward self-sufficiency. Congressman Harrigan's No Gambling for Medicaid Act would strengthen the requirement by closing the gambling loophole, preventing abuse of the program and helping more struggling Americans experience the dignity of work," said Kevin Corinth, Daniel C. Searle Chair and Senior Fellow at the American Enterprise Institute.

"APP is pleased to endorse the No Gambling for Medicaid Act. Gambling addictions have destroyed too many relationships, families, and lives; this bill corrects an oversight that should be common sense. We need to be protecting families from this predatory industry, not giving them twisted incentives to risk money they don't have to qualify for healthcare. We thank Rep. Harrigan for his important work to address this issue," said Terry Schilling, APP President.

The new Medicaid work requirements, set to take effect January 1, 2027, allow recipients to qualify by earning the equivalent of 80 hours at the federal minimum wage each month. However, the current income calculation counts gambling winnings without deducting losses. The No Gambling for Medicaid Act would exclude those winnings from the calculation, while keeping an exception for people who gamble professionally as a regular business.

The legislation would amend the Social Security Act to address the loophole before the new requirements take effect in 2027. Following its introduction, the bill will be referred to the appropriate House committee for consideration.