Key facts
- CMS issued interim guidance on Medicaid work requirements.
- States can implement new work requirements for Medicaid enrollees.
- The rule requires 80 hours of work per month for eligibility.
- The initiative aims to move able-bodied enrollees to employer-sponsored health plans.
- States will receive $200 million in grants to support implementation.
- The new requirements go into effect January 1, 2027.
The Trump administration is implementing new work requirements for able-bodied Americans on Medicaid, alongside a crackdown on government spending for illegal immigrants. Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Oz announced the strategy, stating that roughly $2 billion in federal tax dollars were improperly going to illegal immigrants, a figure that has doubled since last year. CMS has already recouped half of the $2 billion owed by California. The new Medicaid rule mandates that able-bodied recipients must work 80 hours per month, volunteer, or pursue education to maintain coverage. Oz framed these requirements as a "path to prosperity" and a return to Medicaid's original intent, emphasizing that those receiving value from the American people should contribute if physically able. The initiative aims to move recipients to employer-sponsored health plans and preserve program space for the most vulnerable.