Dec 20, 2025
The Centers for Medicare and Medicaid Services released new guidance to help states implement major Medicaid eligibility, financing, and community engagement reforms established under the Working Families Tax Cut (WFTC) legislation. These reforms, the most significant in over a decade, require state s—by January 1, 2027—to introduce community engagement expectations for able-bodied, working-age adults. The goal is to connect members with work and community activities, reduce improper enrollment, and ensure long-term sustainability of Medicaid and CHIP. HHS Secretary Robert F. Kennedy, Jr. and CMS Administrator Dr. Mehmet Oz emphasized that these changes promote dignity, purpose, and economic opportunity for beneficiaries. The new requirements align Medicaid with long-standing policies in SNAP and TANF. CMS outlined four guiding principles for states: connecting members to work and community, allowing state flexibility, aligning with existing federal program rules, and protecting taxpayers through auditable verification processes. An accompanying Informational Bulletin further addresses lawful enrollment standards, closing financing loopholes, and supporting rural hospitals. This guidance is part of a broader series CMS will continue releasing to support full implementation of the WFTC reforms, reinforcing a strong state-federal partnership to safeguard Medicaid and CHIP for vulnerable Americans. ...read more read less
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