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Can employees ask for less $ to qualify for medicaid

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An employer has been approached by an employee who has asked for a pay reduction, which will allow the employee to qualify for Medicaid. Can/should the employer agree to this? I'm aware of prohibitions on incentivizing medicare-eligible employees from dropping their employer plans, and believe insurers cannot incentivize employees to participate in the Exchange rather than employer-sponsored coverage, but not aware of any similar prohibitions for Medicaid. The idea of it makes me uncomfortable, though.

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