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HF424 • 2026

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.

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.

Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
TUREK
Last action
2025-02-17
Official status
Introduced, referred to Health and Human Services. H.J. 335 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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.

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.

What This Bill Does

  • 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.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-02-17 Iowa Legislature

    Introduced, referred to Health and Human Services. H.J. 335 .

Official Summary Text

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.

Current Bill Text

Read the full stored bill text
House

File

424

-

Introduced

HOUSE

FILE

424

BY

TUREK

A

BILL

FOR

An

Act

relating

to

the

establishment

of

the

work

without

worry

1

program

under

the

medical

assistance

program

for

employed

2

individuals

with

disabilities,

and

including

effective

date

3

provisions.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

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Section

1.

NEW

SECTION

.

249O.1

Definitions.

1

As

used

in

this

chapter,

unless

the

context

otherwise

2

requires:

3

1.

“Countable

income”

means

the

income

of

an

individual

when

4

the

income

is

received

and

can

be

used

to

meet

the

individual’s

5

needs

for

food,

clothing,

and

shelter.

“Countable

income”

does

6

not

include

the

income

of

another

member

of

the

individual’s

7

household,

or

certain

receipts

as

described

in

20

C.F.R.

8

§416.1103.

9

2.

“Department”

means

the

department

of

health

and

human

10

services.

11

3.

“Disability”

means

a

qualifying

disability

as

determined

12

by

the

federal

social

security

administration,

or

the

13

individual

is

determined

by

the

department

to

have

a

physical

14

or

mental

impairment,

or

combination

of

impairments,

that

have

15

lasted

or

are

expected

to

last

for

at

least

twelve

months

or

16

result

in

death.

17

4.

“Long-term

services

and

supports”

means

the

broad

18

range

of

health,

health-related,

and

personal

care

assistance

19

services

and

supports,

provided

in

home

and

community-based

20

settings,

necessary

for

persons

with

disabilities

who

21

experience

limitations

in

their

capacity

for

self-care

due

to

a

22

physical,

cognitive,

or

mental

disability

or

condition.

23

5.

“Program”

means

the

work

without

worry

program

24

established

in

section

249O.3.

25

Sec.

2.

NEW

SECTION

.

249O.2

Program

——

intent.

26

It

is

the

intent

of

the

general

assembly

to

remove

barriers

27

to

employment

for

individuals

who,

but

for

income

and

28

resources,

meet

the

definition

of

disability,

by

providing

29

medical

assistance

to

employed

individuals

with

disabilities

30

through

a

work

without

worry

program

in

accordance

with

section

31

1902(a)(10)(A)(ii)(XIII)

of

the

federal

Social

Security

Act,

32

and

Medicaid

eligibility,

using

less

restrictive

income

and

33

resource

requirements

through

the

application

of

section

34

1902(r)(2)

of

the

federal

Social

Security

Act,

and

cost-sharing

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requirements

established

by

the

department

and

approved

by

the

1

centers

for

Medicare

and

Medicaid

services

of

the

United

States

2

department

of

health

and

human

services.

3

Sec.

3.

NEW

SECTION

.

249O.3

Program

——

established.

4

1.

The

work

without

worry

program

is

established

under

the

5

medical

assistance

program

and

shall

be

administered

by

the

6

department

to

provide

employed

individuals

with

disabilities

7

access

to

health

care

coverage

through

the

medical

assistance

8

program.

9

2.

Except

as

otherwise

specified

in

this

chapter,

10

provisions

applicable

to

the

medical

assistance

program

11

pursuant

to

chapter

249A

shall

be

applicable

to

the

program.

12

3.

In

addition

to

the

benefits

received

under

the

program,

13

an

individual

shall

have

access

to

all

traditional

Medicaid

14

services

under

the

medical

assistance

program,

as

well

as

15

additional

long-term

services

and

supports

and

community-based

16

services,

including

waiver

services,

for

which

the

individual

17

meets

any

applicable

level

of

care

requirements.

18

4.

The

department

shall

make

every

effort

to

coordinate

19

benefits

with

the

health

care

coverage

provided

by

an

employer

20

of

an

employed

individual

with

a

disability

receiving

benefits

21

under

this

chapter.

22

Sec.

4.

NEW

SECTION

.

249O.4

Program

——

eligibility.

23

1.

Except

as

otherwise

provided

in

this

chapter,

an

24

individual

may

participate

in

the

program

if

the

individual

25

meets

all

of

the

following

criteria:

26

a.

The

individual

is

eligible

for

the

medical

assistance

27

program

under

chapter

249A.

28

b.

The

individual

is

at

least

eighteen

years

of

age.

29

c.

The

individual

is

less

than

sixty-five

years

of

age.

30

d.

The

individual

has

a

disability.

31

e.

The

individual

is

employed

and

earns

income

from

32

employment,

which

may

include

self-employment.

An

individual

33

is

employed

if

the

individual

receives

earnings

that

are

34

subject

to

federal

income

tax,

and

unless

the

individual

is

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self-employed,

has

payroll

taxes

deducted

from

those

earnings.

1

2.

The

department

shall

not

adopt

a

rule

for

program

2

eligibility

based

upon

any

of

the

following:

3

a.

An

individual’s

income

or

resources.

4

b.

A

resource

test

or

limit.

5

c.

An

individual’s

receipt

of

federal

disability

benefits.

6

3.

An

individual

who

receives

supplemental

security

income

7

shall

be

automatically

eligible

for

the

program

and

shall

not

8

be

required

to

submit

a

separate

application

for

the

program.

9

4.

An

individual

may

be

eligible

for

or

receive

other

health

10

care

coverage

including

through

an

employer,

through

Medicare,

11

or

through

the

medically

needy

program,

the

qualified

Medicare

12

beneficiary

program,

or

the

specified

low-income

Medicare

13

beneficiary

program.

If

the

individual

has

such

other

coverage

14

and

is

subject

to

payment

of

copayments

or

premiums

for

that

15

coverage,

notwithstanding

the

premium

requirements

under

the

16

program

to

the

contrary,

the

individual

shall

not

be

subject

to

17

payment

of

premiums

otherwise

applicable

under

the

program.

18

Sec.

5.

NEW

SECTION

.

249O.5

Program

——

premiums.

19

1.

An

individual’s

monthly

program

premium

amount

shall

20

equal,

rounded

down

to

the

nearest

whole

dollar,

six

percent

of

21

the

individual’s

verified

countable

income.

22

a.

An

individual

shall

report

any

change

in

the

individual’s

23

countable

income

to

the

department.

24

b.

The

department

shall

utilize

the

individual’s

verified

25

countable

income

until

the

individual

reports

a

change

in

26

countable

income

and

the

change

is

processed

by

the

department,

27

unless

there

is

good

cause

for

the

department’s

delay

in

28

verifying

the

change

in

the

individual’s

countable

income.

29

c.

A

change

in

an

individual’s

program

premium

amount

shall

30

be

effective

the

month

after

the

change

in

the

individual’s

31

countable

income

is

reported

to

and

verified

by

the

department.

32

2.

An

individual

shall

be

covered

under

the

program

for

33

six

consecutive

months

beginning

the

first

day

of

the

month

in

34

which

the

department

approves

the

individual’s

application

for

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the

program.

1

3.

The

department

shall

create

a

six-month

grace

period

that

2

provides

continuous

program

coverage

to

an

individual

following

3

the

individual’s

temporary

loss

of

employment,

or

a

health

4

crisis

that

temporarily

prevents

the

individual

from

continuing

5

employment.

The

individual

shall

be

required

to

continue

to

6

pay

the

program

premium

based

on

the

individual’s

verified

7

countable

income

during

the

six-month

grace

period.

8

4.

The

department

may

terminate

an

individual’s

program

9

coverage

if

the

individual

fails

to

pay

four

consecutive

months

10

of

program

premiums.

11

5.

An

individual

must

pay

a

program

premium

in

full

for

any

12

month

that

program

coverage

is

provided,

including

a

month

when

13

a

redetermination

of

coverage

is

made,

a

month

when

continued

14

coverage

is

requested,

and

during

the

period

of

an

eligibility

15

determination

appeal.

16

Sec.

6.

NEW

SECTION

.

249O.6

Rules.

17

The

department

shall

adopt

rules

pursuant

to

chapter

17A

to

18

administer

this

chapter.

19

Sec.

7.

WORK

WITHOUT

WORRY

PROGRAM

——

DEPARTMENT

OF

HEALTH

20

AND

HUMAN

SERVICES.

21

1.

The

department

of

health

and

human

services

shall

submit

22

any

waiver

request

or

state

plan

amendment,

or

combination

23

thereof,

to

the

centers

for

Medicare

and

Medicaid

services

of

24

the

United

States

department

of

health

and

human

services

as

25

necessary

to

create

a

work

without

worry

program

in

accordance

26

with

this

Act.

27

2.

Any

individual

participating

in

the

Medicaid

for

28

employed

persons

with

disabilities

program

when

the

work

29

without

worry

program

is

implemented

shall

be

transferred

to

30

and

enrolled

in

the

work

without

worry

program.

31

Sec.

8.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

immediate

32

importance,

takes

effect

upon

enactment.

33

EXPLANATION

34

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

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the

explanation’s

substance

by

the

members

of

the

general

assembly.

1

This

bill

relates

to

the

work

without

worry

program

under

2

the

medical

assistance

program

for

employed

individuals

with

3

disabilities.

4

The

bill

defines

“countable

income”

(income)

and

5

“disability”.

6

The

bill

establishes

a

work

without

worry

program

(program)

7

under

the

medical

assistance

program

to

be

administered

by

the

8

department

of

health

and

human

services

(HHS).

The

program

9

shall

provide

employed

individuals

with

disabilities

access

to

10

health

care

coverage

under

the

medical

assistance

program

as

11

well

as

long-term

services

and

supports

and

community-based

12

services

for

which

the

individual

qualifies.

The

bill

requires

13

HHS

to

make

every

effort

to

coordinate

benefits

with

health

14

care

coverage

provided

by

the

employer

of

an

individual

15

receiving

program

benefits.

16

Under

current

law,

to

be

eligible

for

the

Medicaid

for

17

employed

people

with

disabilities

program

(MEPD

program),

an

18

individual

with

disabilities

must

not

exceed

the

individual

or

19

couple

resource

limits,

or

the

monthly

household

income

limits.

20

The

program

eliminates

these

eligibility

requirements.

21

The

bill

provides

eligibility

criteria

for

the

program.

The

22

bill

prohibits

HHS

from

adopting

a

rule

for

program

eligiblity

23

based

on

an

individual’s

income

or

resources,

a

resource

test

24

or

limit,

or

an

individual’s

receipt

of

federal

disability

25

benefits.

An

individual

receiving

supplemental

security

income

26

shall

be

automatically

eligible

for

the

program

and

is

not

27

required

to

submit

an

application.

An

individual

participating

28

in

the

program

may

be

eligible

for

and

receive

other

health

29

care

coverage

as

described

in

the

bill.

If

an

individual

30

receives

such

coverage

and

pays

a

copayment

or

premium,

the

31

individual

does

not

have

to

pay

a

program

premium

(premium).

32

The

bill

requires

that

the

monthly

premium

equal

6

percent

33

of

an

individual’s

verified

income,

rounded

down

to

the

34

nearest

whole

dollar.

An

individual

shall

report

any

change

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in

the

individual’s

income

to

HHS

and

shall

pay

a

premium

1

any

month

program

coverage

is

provided

as

detailed

in

the

2

bill.

HHS

shall

create

a

six-month

grace

period

to

provide

3

continuous

program

coverage

to

an

individual

who

temporarily

4

loses

employment

or

suffers

a

health

crisis

that

prevents

5

the

individual

from

continuing

employment.

The

individual

6

shall

be

required

to

continue

to

pay

the

premium

during

the

7

six-month

grace

period.

HHS

may

terminate

an

individual’s

8

program

coverage

for

failure

to

pay

four

consecutive

months

of

9

premiums.

10

The

bill

requires

HHS

to

adopt

rules

to

administer

the

bill.

11

The

bill

requires

HHS

to

submit

any

waiver

request

or

state

12

plan

amendment

to

the

federal

centers

for

Medicare

and

Medicaid

13

services

as

necessary

to

create

the

program.

14

The

bill

requires

any

individual

participating

in

the

MEPD

15

program

to

be

transferred

to

and

enrolled

in

the

program.

16

The

bill

is

effective

upon

enactment.

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