Groups sue to block Medicaid work requirement in Indiana

The National Health Law Program and Indiana Legal Services yesterday filed a federal lawsuit challenging the administration for approving a Section 1115 waiver for Indiana that requires certain adults to work to maintain Medicaid coverage, among other reforms, claiming the waiver violates the Administrative Procedure Act and U.S. Constitution. In earlier challenges filed in the same court, a federal judge this year blocked Medicaid work requirements in New Hampshire and in Kentucky and Arkansas. CMS last year issued policy guidance for states proposing demonstration projects that require or encourage working-aged Medicaid beneficiaries who are not pregnant or disabled to participate in work or other “community engagement” activities.