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States Sue Over Medicaid’s ‘Sick Enough’ Test

The states say the rule could force sick and disabled enrollees to prove they cannot work, adding paperwork and risking coverage losses.

  • Earlier this week, 25 Democratic-led states plus the District of Columbia sued the Trump administration over a new federal rule narrowing the definition of who qualifies as 'medically frail' for Medicaid work requirement exemptions.
  • When Congress passed H.R. 1 in 2025, it mandated Medicaid expansion enrollees work 80 hours monthly; the Centers for Medicare & Medicaid Services later added requirements that individuals prove their conditions impair their ability to work.
  • Several state Medicaid agencies warn that requiring proof of impaired work capacity creates a 'paperwork morass,' forcing patients to involve doctors in documentation and risking coverage loss for an estimated 5 million enrollees who might otherwise qualify.
  • Colorado Medicaid director Adela Flores-Brennan stated the rule's complexity fosters an environment 'ripe for errors,' while California officials warned CMS they relied on earlier guidance to build systems and staffing before the deadline.
  • States must notify enrollees of new requirements by August 31, 2026, before work requirements take effect on January 1, 2027, though the ongoing litigation now threatens implementation of these federal guidelines.
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communityq.com broke the news in Philadelphia, United States on Wednesday, July 1, 2026.
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