New York, California Lead Lawsuit Against Trump Administration Over Medicaid Work Requirements
A coalition of 25 states and the District of Columbia has filed a lawsuit against the Trump administration over new Medicaid work requirements, arguing the rules unlawfully restrict access to healthcare coverage.
The lawsuit challenges an Interim Final Rule issued by the Centers for Medicare and Medicaid Services that requires certain Medicaid recipients to provide documentation proving they qualify for exemptions from work requirements due to serious medical conditions.
Under the policy, able-bodied Medicaid recipients would be required to work, volunteer or attend school for at least 20 hours per week in order to remain eligible for benefits.
Before the rule was issued in June, many individuals with severe health conditions were expected to receive automatic exemptions based on existing medical records without needing to submit additional paperwork.
The lawsuit names HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz as defendants.
Oz has defended the policy as a necessary safeguard to protect taxpayer-funded programs from fraud and abuse.
“If you can work, you should get up and work,” Oz previously said.
“If we put guardrails around these programs, we’ll allow them to thrive. We cannot allow these programs to be defrauded into a turmoil that they cannot pull up from.”
Supporters of the policy argue that individuals receiving taxpayer-funded healthcare who are physically able should contribute through work, education or community service.
Opponents argue the requirements will cause millions of eligible recipients to lose coverage because of paperwork burdens rather than actual ineligibility.
According to the lawsuit, CMS estimates that approximately 2.3 million Medicaid recipients could lose coverage during the first year of implementation.
The suit also claims that roughly seven percent of recipients who are either working or qualify for exemptions could still lose benefits because of missed deadlines, documentation issues or confusion surrounding reporting requirements.
Beginning in 2028, recipients without immediate access to medical records would be limited to a single self-attestation declaring under penalty of perjury that they are unable to work because of health issues.
Plaintiffs argue this represents a major departure from previous guidance that allowed individuals to update their medical circumstances over time.
The lawsuit also claims states would be forced to abandon existing automated systems and replace them with more expensive manual review processes.
States participating in the lawsuit include New York, California, New Jersey, Illinois, Massachusetts, Pennsylvania, Virginia, Michigan, Minnesota, Wisconsin, Washington and several others.
The coalition is seeking a temporary injunction to block enforcement of the rules before notices are sent to Medicaid recipients later this year.