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Democratic states sue over Medicaid work rules

Axios

Twenty-five Democratic-led states and the District of Columbia have filed a lawsuit against the Trump administration over new Medicaid work requirements. The plaintiffs argue that the exemptions for sick individuals are too narrow and violate administrative law. This legal challenge highlights the ongoing tension between federal and state governments over healthcare access.

The lawsuit was filed on Monday in a federal court in Massachusetts. The states contend that the rule contradicts congressional intent by making it excessively difficult for people to qualify for exemptions due to illness. They claim the rule will cause "immediate and irreparable harm" to state Medicaid programs, straining safety net providers, increasing uncompensated emergency care costs, and raising the likelihood of rural hospital closures.

The suit was brought by 23 Democratic attorneys general and the Democratic governors of Kentucky and Pennsylvania, both of which have Republican attorneys general. The Centers for Medicare and Medicaid Services (CMS) has not yet responded to requests for comment. The states also argue that the CMS rule deviates significantly from previous guidance provided to states, violating administrative procedure laws.

Under the new rules, Medicaid enrollees will be required to log 80 hours of work or approved activities per month to continue receiving benefits, starting no later than January 1. States must send notices to enrollees by August 31 explaining how to comply. This requirement poses significant challenges for individuals with chronic illnesses or disabilities who cannot consistently work.

Democrats warn that these rules will jeopardize care for the most vulnerable Americans and cause upheaval in states rushing to implement them. The outcome of this lawsuit could have far-reaching implications for millions of low-income Americans who rely on Medicaid for their healthcare coverage. The case underscores the deep political divisions over healthcare policy in the United States.

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