The Oatmeal Bite

The Oatmeal Bite

Medicaid Work Requirements Miss the Mark

New federal rules create a five-year recovery cliff for SUD patients, with the CBO projecting 5.2 million coverage losses by 2027.

Jonathan Govette, CEO/Oatmeal's avatar
Jonathan Govette, CEO/Oatmeal
Jul 17, 2026
∙ Paid

Something shifted in American healthcare policy on June 1, 2026. That day, the Centers for Medicare and Medicaid Services (CMS) issued an Interim Final Rule establishing Medicaid community engagement requirements as national policy. By July 31, the rule takes effect. By January 1, 2027, 44 states and the District of Columbia must begin implementation.

Nebraska didn't wait. It launched the country's first Medicaid work requirement program on May 1, 2026, before the federal rule even dropped. The template was set, and the rest of the country is now following.

At its core, the policy sounds simple: Medicaid enrollees who are able to work must spend 80 hours per month on work, community service, education, or job training to keep their coverage. Fail to document that time, and you lose Medicaid, at least temporarily.

The exemptions sound generous: pregnant women, children, caregivers, students, people over 65, and people with serious medical conditions. The rule's architects argue it targets…

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