Establishes the American Dream Voluntary Transition Program to help Medicaid recipients transition to private insurance.

The American Dream Act creates the American Dream Voluntary Transition Program, a Medicaid waiver component. It allows eligible Medicaid recipients to transition to private insurance. The program has three phases. Phase one allows recipients with incomes up to 250% of the federal poverty line to stay on Medicaid for 12 months. Phase two requires participants to maintain employment and deposit 25% of their income above 250% of the federal poverty line into an American Dream savings account.

Establishes the American Dream Voluntary Transition Program to help Medicaid recipients transition to private insurance.

The American Dream Act creates the American Dream Voluntary Transition Program, a Medicaid waiver component. It allows eligible Medicaid recipients to transition to private insurance. The program has three phases. Phase one allows recipients with incomes up to 250% of the federal poverty line to stay on Medicaid for 12 months. Phase two requires participants to maintain employment and deposit 25% of their income above 250% of the federal poverty line into an American Dream savings account.