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Trump’s Medicaid Work Rules Force States To Scrap Plans and Rework Systems

CMS says a serious medical condition alone will not qualify beneficiaries for the exemption and requires states to verify how illness affects work ability.

  • The Centers for Medicare & Medicaid Services released new regulations on June 1 requiring stricter documentation for 'medically frail' Medicaid exemptions, mandating individuals prove their condition significantly limits their ability to work before Jan. 1, 2027.
  • For months, states prepared systems based on self-attestation, but these federal rules force a 'significant policy pivot,' according to Manatt Health partner Kinda Serafi, requiring costly administrative re-evaluations.
  • Nebraska officials must now reassess how to determine if enrollees are too sick to work, having released a nearly 300-page list of exemptions including cancer, dementia, autism, epilepsy, HIV, and Parkinson's disease.
  • Despite promised discounts from contractors Deloitte, Accenture, and Optum, upgrading eligibility systems imposes new costs; Heather Howard, director of State Health and Value Strategies, noted discounts 'are not going to be helpful across the board.'
  • Roughly 18.5 million adults could be required to prove they are working under the One Big Beautiful Bill Act, while the Congressional Budget Office estimates 5.3 million enrollees could lose Medicaid coverage by 2034.
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Helena Independent RecordHelena Independent Record
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Montana DPHHS moving forward with July 1 work requirement start date despite questions

The Trump administration's change to the "medically frail" definition could mean people with serious medical conditions have a harder time proving that they should be exempt from Medicaid work requirements.

·Helena, United States
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www.counterpunch.org broke the news on Monday, June 8, 2026.
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