Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks at a news conference on efforts to combat fraud, in the Old Eisenhower Executive Office Building on the White House campus Wednesday, Feb. 25, 2026, in Washington. (AP Photo/Tom Brenner)
A coalition of 25 states and Washington, D.C., against President Donald Trump’s administration for its strict interpretation of new Medicaid work requirements included in the One Big Beautiful Bill.
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The lawsuit, filed in federal district court in Massachusetts, claims a new June 3 rule from the Health and Human Services Department and Centers for Medicare & Medicaid Services forces “vulnerable Medicaid members” to “jump through unnecessary administrative hoops” to get and retain life-saving healthcare coverage.”
CMS and HHS did not immediately respond to a request for comment.
Democratic attorneys general filed the suit on behalf of their respective states, and two governors, Gov. Josh Shapiro of Pennsylvania and Gov. Andy Beshear of Kentucky, joined in their official capacity.
The state officials claim the new rule ignores work-requirment exemptions Congress passed through the OBBB. Individuals excluded from the requirements include people who are “medically frail,” as well as people who are blind, physically, intellectually, or developmentally disabled, or have severe mental disorders.
The Medicaid work requirements passed in the OBBB mandated that able-bodied individuals can qualify for coverage by completing at least 80 hours per month of activities such as paid employment, federally recognized job-training or education programs, and community service.
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The new rule rejects a broader definition of “medically frail” individuals, and requires those seeking coverage to prove their condition “significantly impairs” their ability to comply with the work requirements — rather than solely declaring they have a diagnosis or condition that would qualify them for the exemption.
“CMS adopted a rule that dramatically narrowed the Congressionally established categorical exclusions from the work requirement for some of the most vulnerable Medicaid members,” the plaintiffs wrote in the lawsuit.
The administration pursued the strict interpretation of the Medicaid work requirements to cut down on alleged fraud and abuse in the system, NOTUS reported earlier this month.
“We’re forgiving but we’re not foolish,” CMS administrator Mehmet Oz said at a press briefing after the rule was published.
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