New Jersey sues Trump to halt new Medicaid work rules
By: Scott Fallon
NorthJersey.com
USA Today Network - New Jersey
..... New Jersey is making a last-ditch effort to stop a new set of federal regulations that will knock as many as 400,000 residents off the state's Medicaid rolls by the end of the year. [2026]
.....
State Attorney General Jennifer Davenport and her counterparts in 23 other states sued President Donald Trump's administration on June 29 [2026] saying "medically frail" Medicaid user face hurdles to exempt themselves from new work requirements.
..... The requirement published in June [2026] will make low-income New Jerseyans "jump through unnecessary administrative hoops to get and retain life-saving health care coverage" the lawsuit says.
..... A spokesperson for the Health and Human Services department did not immediately respond to a request for comment.
..... In the roll-out of the rules on June 1, [2026] officials said he regulation target able-bodied Medicaid recipients who are not working.
..... The new regulations help "Americans build skills and independence through work, education, job training, or community service, creating new opportunities for themselves and their families," said Mehmet Oz, the former New Jersey heart surgeon who is now director of the Centers for Medicare and Medicaid Services.
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The changes stem from the "One big Beautiful Bill" signed in 2025 by President Donald Trump, which extends tax credits and cuts social services. New jersey is estimated to lose $3.6 billion in annual funding form Washington for the halal th insurance program, which is used by 1.8 million lower-income residents.
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The new law requires some Medicaid recipients to hold a job. It also exempts those who cannot work. But Davenport and other Democrats say the requirements to prove that a patient's condition impairs their ability to work are too onerous.
Work exemption
..... It also puts pressure on state government to expand its Medicaid screeners. New Jersey has three government employees who make individualized Medicaid determinations for about 2,000 residents. That workforce would have to expand significantly to screen the hundreds of thousands who may seek a work exemption, the lawsuit says.
..... The new rules consider those who qualify for an exemption as having:
* disabling mental disorders, including children with serious emotional disturbances and adults with serious mental illness.
* Chronic substance use.
*
Serious and complex claimed conditions.
* A physical, intellectual or developmental disability that significantly impairs the ability to perform one or more activities of daily living.
..... Fearing that a significant amount of their income will be curtailed by Medicaid cuts, some New Jersey hospitals are gearing up to help patients either sing up for the work requirement or pursue an exemption.