Exclusive - GOP Rep. Harrigan Introduces Bill to Close Gambling Loophole in Medicaid Work Requirements

Exclusive – GOP Rep. Harrigan Introduces Bill to Close Gambling Loophole in Medicaid Work Requirements Michelle Gustafson/Bloomberg via Getty Images Rep. Pat Harrign (R-NC) is introducing a bill that would close a loophole that allows people to claim certain gambling winnings under Medicaid’s work requirements, Breitbart News has learned exclusively. Harrigan’s bill, which is called the, “No Gambling for Medicaid Act” would “amend title XIX of the Social Security Act to exclude certain gambling winnings from monthly income under the community engagement requirement under the Medicaid program.” The introduction of Harrigan’s bill comes as, beginning on January 1, 2027, certain “non-disabled” adults between the ages of 19-64 who are covered under Medicaid must satisfy a work requirement under the One Big Beautiful Act (OBBA), according to the one-pager that goes with Harrigan’s bill. One way that adults covered under Medicaid would be able to satisfy the work requirement would be to show that their household income is $580 a month. The monthly income total is calculated by multiplying the federal minimum wage, which is $7.25, by 80 hours, which then comes out to $580. A press release from June explains that the Centers for Medicare and Medicaid Services (CMS) “issue an interim final rule implementing a new statutory requirement for certain adults in Medicaid to meet an 80 hours per month work requirement.” According to the one-pager, while “Counting gambling winnings as income is problematic in its own right,” it also “create[s] a separate loophole.” “A recipient can reach $580 in gross winnings without risking significant net losses, for example by betting on both sides of a single event at two different sportsbooks. In most states, showing $580 in income once satisfies the requirement for a full six-month recertification period,” the one-pager explains. “A law meant to encourage work and community engagement could thus encourage more frequent and targeted gambling instead.” In a post on X from October 21, Harrigan shared an opinion piece that Kevin Corinth, a senior fellow with the American Enterprise Institute, wrote in the Washington Post. “If Washington thinks placing bets counts as holding a job, Washington has lost its mind,” Harrigan wrote in his post. “A loophole in Medicaid’s new work requirements could let someone qualify by gambling just $580 a month, and I’m introducing legislation to shut it down.” Corinth explains in his article that “the majority of states plan to require the minimum of one qualifying month during each six-month period”: Despite the hysterics, the new requirement is quite flexible. The number of people exempted — pregnant women, parents with a child under age 14, caretakers of those with disabilities and various others — is expansive. The law also allows states to choose how frequently Medicaid recipients must demonstrate compliance. According to a March survey, the majority of states plan to require the minimum of one qualifying month during each six-month period. (In other words, recipients need to prove only that they’re working two months out of the year.) The requirement can be satisfied by working, training or volunteering 80 hours a month or by enrolling at least half-time in school. People could alternatively demonstrate countable household income of at least $580 a month — that is, $7.25, the federal minimum wage, multiplied by 80 hours. As is the case for income that is counted when filing taxes, gross gambling winnings count as income for purposes of qualifying for Medicaid. Based on the Centers for Medicare and Medicaid Services’ interim final rule, they will soon count toward satisfying the Medicaid work requirement, too. That sum represents the profit above and beyond the original stakes on winning gambles without netting out losses. As long as they are made during different “sessions,” a wager that wins $100 in profit and a separate wager that loses $100 would still yield gross winnings of $100, even though there was no net gain. Harrigan’s bill would not only close this gambling loophole but would also define people’s “covered gambling winnings” as being a prize, award, or money that comes from a bet or wager. The bill would also protect professional gamblers by exempting wagering engaged in as a trade or business, according to the one-pager.