Four states have filed a lawsuit asking the court to delay implementation of Medicaid work requirements less than 60 days ahead of the implementation deadline.

The Medicaid work requirements were passed as part of the GOP's "Big Beautiful Bill" in July 2025. Per the requirements, individuals who receive Medicaid via the Affordable Care Act's Medicaid expansion must complete 80 hours of work, volunteering or schooling each month to maintain coverage.

In the new lawsuit, filed by state attorneys general from Oregon, Minnesota, New Mexico and Washington, plaintiffs argue that this goes beyond the scope of the CMS' authority and infringes on states' sovereign interests. Under the law, states have little option but to comply with the work requirements, considering the federal Medicaid funding at stake. [AV: Changed “attorney generals” to “attorneys general” -- a very weird plural lol]

But the work requirements significantly “transform” Medicaid essentially into a new program, the plaintiffs argue. Previous court rulings have held that the CMS cannot threaten existing Medicaid funds for participation in such a substantially altered Medicaid program.

The lawsuit asks the court to declare the withholding of federal Medicaid funds unconstitutional. The plaintiffs also seek a preliminary and permanent injunction on funding cuts for states that do not enact work requirements.

The lawsuit also touched on the financial impacts the Medicaid work requirements could have on the states. The plaintiffs argue that the work requirements impose direct administrative compliance costs and put states at risk for secondary costs, such as higher uncompensated care costs due to higher uninsurance rates.

Source link