CMS Starts Process to Rescind Medicaid Work Requirements

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On February 12, 2021, The Centers for Medicare and Medicaid Services (CMS) notified states that it no longer believes work requirements are compatible with the goals of Medicaid and is giving states 30 days to argue in favor of keeping the programs. The work requirement demonstrations, created under the Trump administration, would allow states to revoke Medicaid coverage when a beneficiary fails to seek or obtain a job, and has been subject to numerous court challenges since its creation. CMS argues that with the ongoing pandemic and increasing health inequalities, the impact of work requirements could be detrimental to vulnerable populations, and that Medicaid coverage should be based on need, not the ability to find work. CMS is also considering keeping some portions of the demonstration projects, like the extension of Medicaid eligibility to certain otherwise-ineligible individuals, and only looking to revoke the work requirements. Read more here.

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