CMS Issues New State Guidance on Transformative Medicaid Reforms

The Centers for Medicare & Medicaid Services (CMS) provided additional guidance outlining how states should implement landmark community engagement requirements created by the Working Families Tax Cut (WFTC) legislation (Public Law 119-21). The reforms—among the most significant Medicaid eligibility and financing changes in more than a decade—aim to connect able-bodied, working-age adults with work and community engagement opportunities, reduce improper enrollment, and strengthen the long-term sustainability of Medicaid and the Children’s Health Insurance Program (CHIP).

States must implement these requirements by January 1, 2027, but may choose to do so earlier.