One Year In: Implementing the Medicaid Provisions of the Working Families Tax Cut Act

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AHLA's Speaking of Health Law 57 min 3 speakers 8 chapters transcribed 1 month ago
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What is the Working Families Tax Cut Act and why is it reshaping Medicaid?

Unknown 0:05
This episode of AHLA Speaking of Health Law is brought to you by AHLA members and donors like you. For more information, visit American Health Law.org.
Harsh P. Parikh 0:17
Hello and welcome to the HLA Speaking of Health Law podcast. Today we're refreshing our deep dive on the sweeping 2025 budget reconciliation law and its transformative impact on the Medicaid program. When we first recorded this broadcast, the law we're talking about was noted widely as the one big beautiful Bill Act, the OBBBA, or simply HR one. Now, almost a year later, the law has been rebranded as the Working Families Tax Cut Act, the name that shows up in almost all government guidance and rulemaking. Whatever you call it, the Medicaid provisions are the same, and they're the largest changes to the Medicaid program in a generation. A quick refresher before we get started on how we got here. The law was passed via budget reconciliation by a vote of 51 to 50 in the Senate and 218 to 214 in the House, signed by President Trump on July 4, 2025.
Harsh P. Parikh 1:18
So we're almost we're more than a year into its implementation. As I noted earlier, it's the largest Medicaid cut in the US history, roughly 900 billion, some say almost a trillion. Uh about three quarters of that is leading to likely loss coverage in terms of insurance. This the CBO estimates that ten million people will likely lose coverage by twenty thirty-four. That number was reaffirmed just earlier this year. So here's what's different about today's conversation. A year ago we were reading the statute, describing what the law said. Today we're watching it come to life, and implementation is where rubber meets the road. We've got lots of knowns now, and honestly, even more unknowns. Since we last spoke, guidance has come fast and furious.
Harsh P. Parikh 2:10
A work requirement interim final rule dropped just last month. A non citizenship eligibility letter to state health officials went out in April. Six month redetermination guidance, sweeping proposed rule on state directed payments came out in May. And of course, fifty billion dollars in the rural health transformation program has begun to be doled out across the country. But the biggest new development, the courtroom. We now have one of the first major litigation challenges of the uh uh uh challenging these Medicaid provisions from being implemented. And we're going to give that its own segment today. So a little housekeeping before we get going. This is a non political conversation. The views you are gonna hear today are our own.
Harsh P. Parikh 2:55
They're not of our firms or our clients. And the standard disclaimer applies, nothing we say here today is legal advice. And with that out of the way, let me introduce myself and have our my co-panelists introduce themselves. My name is Harsh Careek. I'm a healthcare partner at the law firm Nixon Peabody, where I focus on healthcare regulatory and transactional matters, much of them focused on government reimbursement and stakeholders and providers that take advantage of government healthcare programs. Lloyd, Ann, maybe Lloyd, we'll start with you first. Sure.
Lloyd A. Bookman 3:27
Uh good morning everybody. I'm Lloyd Bookman, um, founding partner of Hooper Lundy and Bookman, where we just celebrated our thirty ninth year. Hard to believe. Um I'm a healthcare lawyer. My uh representation focuses on healthcare providers and a significant portion of my uh work over the last four decades has dealt with the Medicare and Medicaid programs, including in particular Medicaid, and there including in particular provider fees, supplemental payments, and the like.
Harsh P. Parikh 3:54
That's gonna be key to our discussion today. Thank you, Lloyd. And
Anne Winter 3:57
Hi, good afternoon, everybody. My name is Ann Winter. I'm a senior managing director at FTI Consulting. I have a long history working in and around Medicaid programs at the state level. at MCOs, um, at PBMs, and um at a provider. So I hope I can bring a multifaceted view to some of the issues we're gonna be talking about today.
Harsh P. Parikh 4:20
Excellent. We're extremely lucky to have Ann and Lloyd uh be part of our discussion today. So let's get started um to where the action is, which is the community engagement requirement, or as everybody now calls it, the work requirement.

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