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WASHINGTON — The Trump administration on Monday published a highly anticipated document that lays out the rules for sweeping new requirements that many adult Medicaid beneficiaries work or attend school in order to qualify for coverage.
The rule, from the Centers for Medicare and Medicaid Services, establishes standards states must use to implement Medicaid work requirements, including who is exempt from the requirements, how to verify exemptions, and state reporting requirements. The work requirements, created as part of President Trump’s 2025 tax cut bill, are popular among Republican politicians, but generally opposed by Democrats and advocates for people who are seriously ill or have lower incomes.
According to initial estimates, the work requirement policy was expected to reduce federal Medicaid spending by $326 billion and cost 5.3 million people their Medicaid coverage. On Monday, a division of the federal Department of Health and Human Services published a research brief contending that the rules may push more people to work, reducing poverty by 1.6 million to 2.9 million people.
Eli Lilly has told about 50 hospitals participating in a federal drug discount program to submit comprehensive claims data over the next five days or they will no longer receive the mandated price breaks.
The move comes after the company announced a policy last January demanding such data in a bid to reduce what it calls duplicate discounts paid to participating hospitals. The issue has riled the pharmaceutical industry and contributed to a long-standing clash with hospitals over the 340B drug discount program.
For the past few years, more than 2,300 hospitals have complied with the demand, but some of the larger hospitals systems around the U.S. have refused to do so, despite recent follow-up letters regarding the policy that went into effect on Feb. 1, according to Derek Asay, senior vice president for government strategy and federal accounts at Lilly. Up to 1,000 have so far not complied.