Medicaid benefits could be cut if work requirements aren't fixed, implemented quickly
On Friday, a federal judge denied Kentucky’s move to impose work requirements on some Medicaid recipients—claiming the Trump administration didn’t properly consider the policy’s effect on the program’s intended aim to provide medical coverage to at-risk populations.
“[HHS Secretary Alex Azar] never provided a bottom-line estimate of how many people would lose Medicaid with Kentucky HEALTH in place,” wrote U.S. District Judge James Boasberg in a 60-page ruling. “This oversight is glaring, especially given that the risk of lost coverage was ‘factually substantiated in the record.”
Many expect CMS to appeal the ruling, though CMS Administrator Seema Verma, MPH, said she will confer with the Department of Justice to formulate a game plan.
“States are the laboratories of democracy and numerous administrations have looked to them to develop and test reforms that have advanced the objectives of the Medicaid program,” Verma said. “The Trump administration is no different.”
Secretary of the Cabinet for Health and Family Services Adam Meier said the state agency hopes to quickly address issues raised in the ruling to move forward with implementation of requirements—or benefits could be cut.
“[W]e look forward to working with CMS to quickly resolve the single issue raised by the court so that we can move forward with Kentucky HEALTH,” Meier said in a statement. “Without prompt implementation of Kentucky HEALTH, we will have no choice but to make significant benefit reductions.”
One policy analyst argued this ruling could have major consequences for other states looking to add requirements to receiving public benefits.
"The message here? Anybody who wants to add work requirements, the bar is very high to now show that there is a connection to health," says Rodney Whitlock, a health policy analyst at Mintz Levin, in an interview with NPR.
Four other states—New Hampshire, Indiana and Arkansas—have been approved to implement work requirements, while another seven are currently applying for the ability to do so.