New federal restrictions could cause health coverage loss for more Minnesotans under Medicaid work reporting requirements

FOR IMMEDIATE RELEASE

St. Paul, MN — The federal government recently released new guidance for Medicaid work reporting requirements that will likely cause more people to be denied or lose their Medicaid health coverage.

In Minnesota, an estimated 128,000 people will be subject to regular reporting for the work reporting requirement, and others will have to prove they qualify for an exemption. Work reporting requirements mean fewer people will be able to afford the health care they need, will add unnecessary complexity and paperwork, will increase administrative costs for states, and will likely not increase employment.

New federal guidance makes health coverage even more difficult to get and maintain. The guidance is restrictive and ignores the reality of serious and complex medical conditions by reducing the number of people who can qualify for an exemption to work requirements because they are medically frail. Narrowing this exemption and subjecting these folks to work reporting requirements could lead to adverse health effects caused by disruptions to their health care.

The guidance also contains provisions that further restrict Minnesota’s ability to implement work reporting requirements in a people-centered way that mitigates coverage loss. For example, limiting an individual from self-attesting that they have a condition impairing their ability to work in 2028 and beyond will create even more burdensome paperwork for people and states. These new restrictions come late as Minnesota works under a compressed timeline to implement Medicaid work reporting requirements starting January 1, 2027.

Minnesotans are all better off when people have the health coverage they need to survive and thrive, but work reporting requirements and this new federal guidance will put affordable health coverage at risk for many.

About Minnesota Budget Project

Minnesota Budget Project
The Minnesota Budget Project is a research and advocacy organization that pursues policy solutions so that all Minnesotans can thrive, regardless of who they are or where they live. Established more than 25 years ago, the Minnesota Budget Project is a nonpartisan project of the Minnesota Council of Nonprofits.