New York, California among 25 states suing Trump admin over Medicaid work rule designed to prevent fraud

A group of Democratic-led states and local jurisdictions has filed suit against the Trump administration, challenging new Medicaid work requirements that officials say are intended to curb fraud but that opponents argue would illegally limit access to health coverage.

The case, brought by at least 25 states along with the District of Columbia, contends that the Centers for Medicare & Medicaid Services’ newly issued Interim Final Rule (IFR) violates federal law and runs counter to both congressional intent and earlier CMS guidance.

Under the IFR, some Medicaid beneficiaries must submit documentation showing they qualify for an exemption from rules requiring enrollees to work, volunteer or attend school because of serious medical conditions.

Prior to the rule’s release in early June, many highly vulnerable Medicaid recipients were expected to receive automatic exemptions from those requirements. State agencies would have relied on existing medical records to approve exemptions, rather than forcing individuals to file additional paperwork before the requirements take effect in January 2027.

The lawsuit lists Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), which issued the IFR, and Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. as defendants.

Oz has previously defended the restrictions, saying such safeguards are necessary to keep the programs from being “defrauded into a turmoil” and arguing that able-bodied people receiving taxpayer-funded benefits should be expected to contribute to society.

“If you can work, you should get up and work,” Oz said.

“If we put guardrails around these programs, we’ll allow them to thrive. I’m here because I love Medicaid. The president has already said he loves and cherishes Medicaid and Medicare. … We cannot allow these programs to be defrauded into a turmoil that they cannot pull up from. If we love these programs, we will make the difficult decisions.”

The new rule would require able-bodied individuals to work 20 hours a week, volunteer, or pursue education while enrolled in free healthcare coverage.

Fox News reached out to the White House and HHS for comment.

The plaintiffs involve California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Arizona, Colorado, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania, Virginia, Wisconsin and Kentucky.

“People with disabilities, patients in the middle of cancer treatment, or those struggling with another serious or complex health condition, shouldn’t be at risk of losing the care that helps maintain their health,” the suit stated.

According to the suit, CMS’s own projections estimate that 2.3 million enrollees will lose Medicaid coverage in the first year alone.

The agency also estimates that 7% of enrollees who are working or qualify for an exemption will lose coverage due to confusing paperwork requirements, strict deadlines or missing documentation, according to the document.

Beginning in 2028, enrollees who do not have immediate medical records on file would be limited to a single opportunity to submit a “self-attestation” form declaring, under penalty of perjury, that they are too sick to work.

Under previous guidance, enrollees were allowed to use self-attestation multiple times as their medical needs evolved.

In addition, plaintiffs said the new rules would force states to abandon automated systems they have already invested in and instead build more complex and costly manual review processes.

As the Aug. 31 deadline to mail notices to Medicaid enrollees approaches, the plaintiffs are seeking a temporary stay and a preliminary injunction to block CMS and HHS from enforcing the rules.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

El Niño is already battering California’s coast as powerful winter storms loom

El Niño-Fueled Storms Batter California Coast as Powerful Winter Weather Looms

California’s looming El Niño threat is already taking shape. As the coast…
Air Force commando crashes to ground from 170-foot ceiling at UTSA game

Air Force commando plummets from 170-foot ceiling at UTSA game

An Air Force commando plunged dozens of feet in front of tens…
Arizona man shoots 10 rounds at apartment after neighbors reject cocaine offer: police

Arizona Man Accused of Firing 10 Shots After Cocaine Offer Rejected

A Scottsdale man allegedly opened fire at an apartment complex after residents…
Hamas made him dig his own grave, but he lived to tell the tale

Hamas Captivity Survivor Says He Was Forced to Dig His Own Grave

A year ago, the world watched a starving young man dig what…
2 hikers rescued after 36 hours lost on Mount Shasta

Two Hikers Rescued After 36 Hours Lost on California’s Mount Shasta

Two young hikers spent 36 hours battling freezing conditions on California’s Mount…
2 killed, 11 others hospitalized, including children, after car drives through Kansas soccer field, police say

Kansas Soccer Field Crash Kills 2, Hospitalizes 11 Including Children

A child and an adult were killed Saturday after a vehicle drove…
Dog separated from owner in Alaska avalanche found alive 2 days later

Dog Found Alive 2 Days After Alaska Avalanche Separates It From Owner

A beloved dog has been rescued from several feet of snow in…
Steve Hilton vows to clear all California homeless encampments by end of 2027

Steve Hilton Pledges to Clear California Homeless Encampments by the End of 2027

Republican gubernatorial candidate Steve Hilton announced a plan at a San Diego…
In Kentucky midterm campaign stop, Trump says he

Trump Campaigns in Kentucky Ahead of Key Midterm Elections

President Trump emphasized what he described as his expanded influence during his…
Bronx man convicted in LA rapper's killing sues Rikers for $1M for shower slip-and-fall

Bronx Man Convicted in LA Rapper’s Killing Sues Rikers Island for $1M Over Shower Fall

A Bronx man convicted in the attack that fatally wounded Los Angeles…
Texas Man Found with Pipe Bombs, Guns, Three Illegal Aliens near Border

Texas Man Found With Pipe Bombs, Guns, 3 Undocumented Migrants

A Corpus Christi man faces a federal charge of transporting illegal aliens…
Two stabbed inside massive Dixon, California corn maze

Two Stabbed Inside Massive Dixon, California, Corn Maze

A family outing at California’s largest corn maze took a frightening turn…