Attorney General Kwame Raoul, as part of a bipartisan coalition of 24 attorneys general and two governors, has announced a lawsuit over the Trump administration’s implementation of new Medicaid work requirements included in the One Big Beautiful Bill Act.
The lawsuit states that Congress created exemptions from Medicaid’s work requirements to ensure people with serious illnesses and disabilities – who Congress called “medically frail” – do not lose coverage or face interruptions in care. According to the lawsuit, CMS’ new rule changes the definition of “medically frail,” imposing extra requirements: Under the new rule, even people diagnosed with serious medical conditions like cancer or quadriplegia would have to prove their condition makes them too sick to work. If they can’t find the right paperwork or otherwise prove their case, the new rule would take away their healthcare coverage.
Raoul says that the interim final rule makes other changes that increase administrative burdens, create unnecessary red tape, and put eligible people at risk of losing their health coverage – including those who are already working or qualify for an exemption.
Raoul and the attorneys general also claim states had already made substantial investments in reliance on the plain language of the One Big Beautiful Bill Act and CMS’ prior guidance and now face the risk of harsh financial penalties for noncompliance with the interim final rule.
