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Medicaid work requirements

Medicaid and the Road Ahead: Spending Cuts, Work Requirements and What’s Next for States, Providers and Families

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Passed last year, President Trump’s One Big Beautiful Bill Act made significant changes to Medicaid—the primary insurance provider for health and long-term care for people with low incomes. These changes are expected to lead to coverage loss for many current enrollees and will reduce funding for Medicaid, placing new financial pressures on states and health care providers. On July 23, KFF and States Newsroom hosted an event focused on the impacts of work requirements and other federal policy changes on states, health care systems, and people.

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understanding medicaid

Medicaid Financing

Medicaid represents $1 out of every $5 spent on health care in the U.S. and is the major source of financing for states to provide health coverage and long-term care. This brief examines key questions about Medicaid financing and how it works.

Medicaid Program Integrity

This brief explains what is known about improper payments and fraud and abuse in Medicaid and describes ongoing state and federal actions to address program integrity.

Medicaid and Provider Taxes

All states except Alaska cover some state Medicaid costs with taxes on health care providers. This brief uses data from KFF’s 2024-2025 survey of Medicaid directors to describe current practices and the federal rules governing them.

Medicaid and Hospitals

Absorbing reductions in Medicaid spending could be challenging for hospitals, particularly for those that are financially vulnerable. This brief provides data on the reach of Medicaid across hospitals, patients, and charity care.

Medicaid Home Care

This issue brief provides an overview of what Medicaid home care (also known as “home- and community-based services”) is, who is covered, and what services were available in 2025.

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  • The Medicaid Resource Book

    Report

    This reference book describes four pivotal aspects of how the Medicaid program operates — who it covers, what it covers, how it is financed, and how it is administered. It was written to assist the public and policymakers in understanding the structure and operation of the Medicaid program.

  • Medicaid Medically Needy Programs: An Important Source of Medicaid Coverage

    Issue Brief

    This issue brief provides an overview of Medicaid's medically needy program; describes how it works for persons with disabilities, the elderly, and low-income families; and highlights some key issues surrounding the program. Included in the paper are hypothetical examples of ways in which individuals can qualify for the medically needy program and are intended for illustrative purposes only.

  • New Reports Explore State Implementation of Prescription Drug Prior Authorization

    Other Post

    States are grappling with a fiscal crisis that threatens funding for Medicaid, the federal-state partnership that provides health coverage for low-income populations. Two new studies shed light on the impact of an increasingly popular strategy - prior authorization - being used to control prescription drug spending. In fiscal year 2003, some 21 states are planning to expand or create prior authorization systems where the state must provide pre-approval before selected drugs can be dispensed to…

  • Simplified Eligibility for Children’s Medicaid in Texas:  A Status Report at Nine Months

    Report

    Simplified Eligibility for Children's Medicaid in Texas: A Status Report at Nine Months This report describes the initial success of Texas new law in removing barriers to children's Medicaid participation and provides the baseline information needed to observe and interpret how the next phase of implementation, the EPSDT mandate, will enhance or undermine the goal of broader coverage of Medicaid-eligible children in Texas. Report

  • Case Study:  Michigan’s Medicaid Prescription Drug Benefit

    Report

    Case Study: Michigan's Medicaid Prescription Drug Benefit This report describes the legislative process behind and content of Michigan's Pharmaceutical Product List (MPPL), a selection of preferred drugs available to be prescribed in the Medicaid program with little restriction. Providers would be required to obtain prior authorization from the state to prescribe any drug not included on the MPPL. Background Paper  

  • State Budget Constraints:  The Impact on Medicaid

    Fact Sheet

    State Budget Constraints: The Impact on Medicaid This fact sheet summarizes the relationship of Medicaid with state budgets and discusses the current fiscal challenges in the states and how it is affecting Medicaid programs. Fact Sheet

  • Children Discharged from Foster Care:  Strategies to Prevent the Loss of Health Coverage at a Critical Transition

    Report

    This report discusses the importance of maintaining health coverage for children who are discharged from foster care and presents strategies that state child welfare and Medicaid agencies can employ to reach this goal. In addition, the report also addresses the needs of children who age out of the foster care system at age 18, and discusses state options to expand health coverage to this group. Report