25 States Sue Trump Administration Over Medicaid Work Rules

A coalition of 25 states and Washington, D.C. filed suit on June 29 against the Trump administration over CMS' interim final rule on Medicaid work requirements, according to Becker's Hospital Review. The 74-page complaint, lodged in U.S. District Court for the District of Massachusetts, targets the agency's June 3 rule, which spells out how states must verify that enrollees are working, in school, or volunteering to keep coverage.

The Democratic attorneys general and governors argue CMS skipped the standard notice-and-comment rulemaking process by issuing the rule as an interim final rule, taking effect without public input. Work requirements have a contested track record: prior efforts in states like Arkansas led to thousands losing coverage over paperwork and reporting hurdles rather than actual employment gaps.

The outcome will shape whether millions of Medicaid enrollees face new administrative conditions to retain coverage. For hospitals and health systems, more uninsured patients means higher uncompensated care costs, making the litigation a financial as well as a policy fight.