Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
Updated 12:08 PM MT
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Federal Policy·September 11, 2026

CMS Issues Three-Tier Medical Frailty Verification Model for Medicaid Work Requirements

On September 8, CMS released a three-tier verification framework for states implementing the medical frailty exclusion from Medicaid work reporting requirements. The model allows states to exclude individuals based on diagnosis alone (Tier 1), diagnosis plus utilization or pharmacy data (Tier 2), or individualized review with documentation (Tier 3). This guidance follows CMS's June Interim Final Rule requiring states to assess whether conditions "significantly impair" work ability — a functional standard that expanded beyond diagnosis-based exclusions and created operational challenges for states that had developed automated data strategies. CMS emphasizes the framework is a model, not a mandate, leaving states to select their own methodologies and code sets with clinical teams.

Why it matters

States must now operationalize a functional-impairment standard for medical frailty that requires clinical judgment and documentation beyond automated diagnosis codes, increasing administrative burden for eligibility systems, providers, and beneficiaries while risking inconsistent application across enrollees.

Managed Care

Read the full article at shvs.org

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