On June 29 local time, Democrats in 25 states of the United States and the District of Columbia filed a lawsuit against the Trump administration, alleging that the new Medicaid regulations issued recently are too strict and will result in many eligible Americans being unable to access the medical services they need.
The Democratic Attorney General and governors from the states where lawsuits were filed claimed that a new rule issued by the US Centers for Medicare & Medicaid Services earlier this month interpreted the “Obamacare” legislation in a narrow way, including actions such as tightening the definition of "medically vulnerable" groups, which allegedly violates the Administrative Procedures Act.
According to the 'Big and Beautiful' Tax and Spending Act passed by California in July 2025, effective January 1, 2027, individuals aged 19 to 64 in the United States who are enrolled in extended planning programs must work or participate in community services for at least 80 hours per month, or be involved in half-day educational programs, to be eligible for Medicaid. Exemptions are available for those with 'medical vulnerabilities' and those undergoing addiction treatment.
But the latest regulations stipulate that an insured person must be in a condition where their health “significantly affects” their ability to work, volunteer, or learn, in order to qualify for an exemption.
The prosecution stated in the document that this change “goes against the consensus reached through continuous communication between the Health Insurance and Medicaid Services Centers and the states over the past few months, as well as the preliminary guidelines for implementing programs developed by the states based on that consensus.”
The litigation documents indicate that additional administrative burdens will lead to people who already meet Medicaid eligibility criteria losing or being denied coverage. Whether they are persons with disabilities, patients undergoing cancer treatment, or those suffering from other serious or complex diseases, they should not face the risk of losing the medical services necessary to maintain their health.
One of the plaintiffs, New York State Democratic Attorney General Leticia James, said that the new regulations will expose thousands of residents in the state to risk. “New Yorkers who are battling cancer, have disabilities, suffer from serious mental illnesses, or are in recovery from drug addiction should be able to access the medical care they need, without being burdened by cumbersome administrative procedures.”
