Nebraska Implements New Medicaid Work Requirements

Nebraska is making headlines as the first state to enforce work requirements for Medicaid. This change stems from a law created under President Trump’s administration in 2025.

Medicaid Changes Take Effect

Starting Saturday, the state will remove individuals from Medicaid who do not comply with the new work requirements. Drew Gonshorowski, Nebraska’s Medicaid Director, stated that approximately 200 residents will lose coverage on August 1. The state has implemented thorough review processes to minimize errors and prevent residents from unjustly losing benefits.

Under federal guidelines, Medicaid recipients in 44 states must work, volunteer, or participate in educational activities for at least 80 hours monthly to maintain benefits. Exemptions exist for individuals with disabilities, serious illnesses, caregivers, and parents of young children.

Policy Goals and Concerns

Supporters of the new policy, including Gonshorowski, believe it can foster economic stability by encouraging employment. They argue that the policy could save the federal government $325 billion over the next decade.

On the other hand, critics cite research indicating past work requirements did not increase employment rates. Many people lost coverage due to a lack of awareness or difficulties with the paperwork. Projections suggest the new rules could impact between 3 million and 8.6 million people by 2028, with about 30,000 affected in Nebraska alone.

Nebraska’s Approach

Gonshorowski believes Nepal is well-prepared for these changes. The state manages its eligibility system and can verify compliance for most residents without additional documentation. Nebraska’s smaller population, around 70,000 individuals under the work requirements, allows for a personalized approach to implementation.

The state has reached out to residents through letters, messages, and media ads. However, Health Center Association of Nebraska’s Amy Behnke criticized these notices for being unclear. A test by Tradeoffs revealed challenges accessing the Medicaid helpline, particularly for Spanish-speaking individuals.

Nebraska officials report an average wait time of 10 minutes on helplines. Gonshorowski emphasized the ongoing collaboration with federal officials to enhance communication efforts.

Monitoring and Outcomes

As the new rules take effect on August 1, Gonshorowski will monitor the number of appeals and requests for fair hearings. These figures will help assess the implementation’s effectiveness, as mistakes in processing due to overlooked variables like disability or income are concerns.

By working with the state’s labor department, Nebraska aims to provide job opportunities for those who lose Medicaid coverage. Gonshorowski sees potential in using new data sets to improve state programs amidst the controversies surrounding the policy.