Medicaid work requirements in Arkansas face new legal battle

CMS is facing a new challenge in its mission to overhaul the Medicaid program by allowing states to implement work requirements for beneficiaries. The National Health Law Program, an organization that lobbies on health policy issues, has sued HHS for its approval of work requirements in Arkansas.

The requirements in Arkansas went into effect in June. However, the rollout did not go smoothly. More than 7,000 people failed to report they worked at least 80 hours during the month, while only 445 participants satisfied the reporting requirements.  

Just two other states, New Hampshire and Indiana, have received approval for work requirements.

The lawsuit argues that HHS vastly exceeded its lawful exercise by approving the work policy in Arkansas. It also argues that the amendment would harm residents across the state. The suit further states that the administration cannot act to make such radical changes to Medicaid, which covers nearly 75 million people, without Congress.

Arkansas has been pushing to add work requirements since mid-2016, when it renamed and amended its Medicaid expansion program “Arkansas Works,” which set forth work requirements and granted retroactive eligibility, which eliminated three-month retroactive coverage.

The case comes after a federal judge blocked work requirements from going into effect in Kentucky earlier this summer. Despite the setbacks, the Trump administration continues to support the work requirements, and the White House agency published a report supporting work policies.

“We are undeterred,” HHS Secretary Alex Azar said in July, the lawsuit cites. “We are proceeding forward. … We’re fully committed to work requirements and community participation in the Medicaid program. … [W]e will continue to litigate, we will continue to approve plans, we will continue to work with states. We are moving forward."

Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

Trimed Popup
Trimed Popup