US delays Medicaid work-rule coverage removals until July 1
Why it matters: States still must track whether enrollees are working, in school or volunteering, but get six more months to avoid coverage losses from rollout problems.
The Trump administration gave states until July 1 before they have to remove people from Medicaid or deny coverage for failing to meet a new work requirement, delaying the penalty phase of a policy set to begin Jan. 1. The Centers for Medicare and Medicaid Services told state Medicaid directors that states may still act at the start of the year, but they are not required to cut off benefits until midyear. Medicaid covers lower-income Americans through a joint federal-state program. CMS said states have made progress but still face staffing, training and technology hurdles. The delay also gives Congress more time to weigh changes after Democrats won control of both chambers and pushed to roll back the requirement.