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BlueWaveNeverEnd

(12,106 posts) Mon Nov 10, 2025, 02:40 AM Monday

Equifax Sees a Big Windfall as Medicaid Work Rules Kick In

Equifax Sees a Big Windfall as Medicaid Work Rules Kick In
Company's pricing power looms as states face bigger income verification bills

When Equifax CEO Mark Begor addressed investors over the summer, he highlighted a "massive" business opportunity: helping states enforce new Medicaid work requirements, a move likely to leave millions without health insurance but poised to boost the company's bottom line. For years, Equifax has dominated the income verification industry, supplying data to banks and landlords, among others. Now, with a Republican-backed law requiring states to verify that tens of millions of Medicaid and food assistance recipients work, volunteer, or study at least 80 hours a month starting in 2027, Equifax's services are in even higher demand, reports the New York Times.

he company already pulls in about $800 million a year selling its "Work Number" database to government agencies, a figure it says could grow to more than $5 billion as the new rules kick in. About half of US states already rely on Equifax, often paying millions annually for quick access to real-time wage data on nearly 100 million workers. Critics say Equifax leverages its near-monopoly to impose steep and frequent price hikes—sometimes doubling or tripling costs within a few years. States report little leverage in negotiations, as alternatives like manually verifying pay stubs are slower and may not satisfy the new law's requirements. Equifax's dominance stems from exclusive data deals with payroll providers and large employers, making it difficult for competitors to gain traction.

The company's income verification business, now responsible for about a third of its revenue, has drawn antitrust scrutiny in the past. Some startups are attempting work-arounds, and the federal government has begun building its own verification tool, but widespread adoption isn't imminent. Equifax, meanwhile, is actively courting new and existing clients, positioning itself as an indispensable partner for agencies under pressure to comply with the law.

https://www.newser.com/story/378088/equifax-sees-a-big-windfall-as-medicaid-work-rules-kick-in.html

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Highlight:

Equifax Sees a Big Windfall as Medicaid Work Rules Kick In (Original Post) BlueWaveNeverEnd Monday OP

Formerly known as Retail Credit Company ck4829 Monday #1

I recommend The Rockford Files episode "The House on Willis Avenue" OrwellwasRight Monday #2

I despise Equifax markie Monday #3

How big was the bribe Equifax paid Trump? Irish_Dem Monday #4

ck4829

(37,213 posts)

1. Formerly known as Retail Credit Company

Reply to BlueWaveNeverEnd (Original post)

Mon Nov 10, 2025, 03:01 AM

Monday

Equifax was founded as the Retail Credit Company by Cator and Guy Woolford in Atlanta, Georgia, as Retail Credit Company in 1899.[8] By 1920, the company had offices throughout the United States and Canada. By the 1960s, Retail Credit Company was one of the nation's largest credit bureaus, holding files on millions of American and Canadian citizens. Even though the company continued to do credit reporting, the majority of its business was making reports to insurance companies when people applied for new insurance policies, such as life, auto, fire and medical insurance. RCC also investigated insurance claims and made employment reports when people were seeking new jobs. Most of the credit work was then being done by a subsidiary, Retailers Commercial Agency.

Retail Credit Company's information holdings and willingness to sell its information attracted criticism in the 1960s and 1970s. These included that it collected "... facts, statistics, inaccuracies and rumors ... about virtually every phase of a person's life; his marital troubles, jobs, school history, childhood, sex life, and political activities." The company was also alleged to reward its employees for collecting derogatory information on consumers. This led to discrimination against queer people and people of color.

In 1970, after the company had computerized its records, which led to wider availability of the personal information it held, the U.S. Congress held hearings that led to the enactment of the Fair Credit Reporting Act. This legislation gave consumers rights regarding information stored about them in corporate databanks. It is alleged that the hearings prompted the Retail Credit Company to change its name to Equifax in 1975 to improve its image.

https://en.wikipedia.org/wiki/Equifax