By 2027, many people who get their health insurance through Medicaid will need to show they are working, pursuing an education or volunteering to remain eligible for their coverage. The new rules, passed as part of the “One Big Beautiful Bill Act,” apply to working-age Medicaid recipients who do not have children under 13 years old, unless they qualify for an exception to the law.
Health plans across the country will be working with their members and state officials to ensure everyone eligible maintains access to care. But insurers can do more than that as we gear up for this new law. To help individuals and communities stay healthy and live well, Medicaid plans should provide support to help members enter and stay in the workforce.
A fulfilling job is a well-known social driver of health, affecting everything from the groceries we buy to securing a safe and affordable place to live. These, in turn, influence how well we prevent or manage conditions like heart disease and diabetes, how easily we can get to the doctor for routine care and how we mitigate stressors that impact our mental wellness.
As a national nonprofit organization serving 2 million members in 14 states, CareSource’s experience has consistently demonstrated strong links between employment and its impact on health outcomes. We also experienced this reality first-hand. In our headquarters in Dayton, Ohio, our community was impacted by a factory closure that led to many community members losing their jobs. This became a turning point for our teams who felt a responsibility to comprehensively address the factors impacting our members’ well-being — a situation that feels too familiar across the country in many of the communities we serve.
At the time, our teams felt a personal responsibility to better address the factors impacting our members’ well-being. In 2014, we launched CareSource JobConnect, a program available to our members that pairs them with life coaches for every step of the employment journey. Participants who opt in meet with their life coaches to explore job opportunities, develop interview skills, and overcome barriers that prevent them from employment. This could include obtaining wage supplements, housing or food assistance, childcare or completing education. After they find a job, CareSource provides participants up to two years of continued life coach support to help them ensure stability.
More than 10,000 CareSource Medicaid members have participated in the program, which will be active across six states in 2026. Many have launched successful careers in industries such as health care, education, manufacturing, customer service and more. We’ve found that our members live better and stay healthier when they work. Those participating in CareSouce JobConnect experience a 20 percent decrease in hospital admissions and reduce their avoidable trips to the emergency department by 11 percent.
Most health plans outsource workforce development to vendors, but we intentionally built our program in-house to best set our members up for success. A recent analysis by Health Management Associates (HMA) found that initiatives like CareSource JobConnect can support the well-being and independence of members, while also benefiting local economies. The report assessed the impact of CareSource JobConnect throughout 2024 in Ohio, Indiana and Georgia, estimating that more than half of participants who found employment in each state transitioned off Medicaid as their earnings increased. This creates savings that states can reinvest into Medicaid care.
More importantly, these programs make a lasting difference for our members and the communities where they work and live. CareSource life coaches, for example, helped more than a third of Ohio program participants secure jobs in 2024. According to the HMA report, Ohio CareSource JobConnect members who worked full-time received averages of $29,456 in annual earnings and $2,227 in earned income tax credits per participant, along with additional subsidies and supplemental benefits. Altogether, the program resulted in more than $7 million in wages, tax credits, and food and housing benefits for Ohioans in 2024.
Newly employed members of job readiness initiatives also bolster their local economies as they spend their earnings at grocery stores, restaurants, businesses, and on housing. These organizations direct their added revenue toward other suppliers and companies, creating a multiplier effect. The HMA analysis estimated an aggregate value of nearly $26.7 million in new revenue generated by working CareSource JobConnect members across Ohio, Indiana and Georgia.
In preparing for work requirements, health plans should not only help their members understand the changes but also actively support them toward self-sufficiency and long-term wellness. Programs like CareSource JobConnect can serve as a blueprint for Medicaid plans to do the same.
Scott Markovich is Executive Vice President of Markets and Products at CareSource
