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CMS Launches State Framework to Implement Medicaid Work Requirements, More Beneficiaries to Lose Coverage

This week, the Centers for Medicare & Medicaid Services (CMS) released an interim rule establishing a framework that states must use to implement the new Medicaid work requirements, which are required to be in place by January 1, 2027. The six-month timeline will put pressure on states to swiftly change their eligibility processes and other policies regardless of the added costs.  

A major concern of both states and beneficiary advocates is CMS' restrictive policy on medical frailty. The framework requires states to further evaluate a beneficiary's ability to work as part of the medical frail exemption from the work requirements. Simply having a complex medical condition or disability is not sufficient, and beneficiaries will have to prove they cannot meet the work requirement. This means fewer people will be exempted as medically frail, and CMS estimates 2.3 million people will lose Medicaid coverage next year due to this specific requirement.  

CMS is accepting comments for feedback until July 31.

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