A coalition of 25 states and the District of Columbia has filed a lawsuit against the Trump administration regarding new Medicaid work requirements intended to prevent fraud. The lawsuit claims that the Interim Final Rule (IFR), issued by the Centers for Medicare & Medicaid Services (CMS), unlawfully restricts access to healthcare coverage and violates federal law. The IFR mandates that certain individuals provide documentation to prove they are exempt from work requirements due to severe medical conditions. Previously, vulnerable Medicaid recipients were automatically exempt from such requirements based on existing health records without needing additional paperwork.
The lawsuit names Dr. Mehmet Oz, the CMS administrator, and Robert F. Kennedy Jr., the Secretary of Health and Human Services, as defendants. Dr. Oz has stated that the new requirements are designed to prevent fraud and ensure that able-bodied enrollees contribute to society. The new rule mandates that able-bodied individuals work 20 hours a week, volunteer, or pursue education while enrolled in Medicaid.
The plaintiffs argue that the new requirements could lead to approximately 2.3 million enrollees losing Medicaid coverage in the first year, with an additional 7% of working enrollees or those qualifying for exemptions potentially losing coverage due to complex paperwork and strict deadlines. The lawsuit seeks a temporary stay and a preliminary injunction to block the enforcement of these rules as the deadline to notify Medicaid enrollees approaches.