Fixing health law glitch to save $13b

Enzi and other lawmakers introduced legislation yesterday to fix a glitch that would have allowed some middle-class early retirees to get health insurance at virtually no cost by qualifying for Medicaid coverage meant for the poor. The problem came to light recently, an obscure provision of the complex health care law that changed the practice of counting Social Security benefits as income for deciding who can get Medicaid.

A retiree drawing Social Security would have paid much less for the same policy than a neighbor of the same age, similar medical history, earning the same total income from work.

Tax credits and a Medicaid expansion are part of the law’s big push to cover the uninsured, which starts in 2014. The law would also require most Americans to carry health insurance.

The White House had no immediate comment on the legislation, although administration officials have said they are interested in addressing the issue.

Enzi’s legislation would reverse the provision, requiring Social Security to be counted when determining eligibility for Medicaid and for tax credits to purchase private insurance.

In a memo provided by the senator’s office, the nonpartisan Congressional Budget Office estimated the legislation would reduce the deficit by about $13 billion between 2014 and 2021, without raising the number of uninsured people.