Morgan Lewis Outlines OBBBA Medicaid Cuts Democrats May Target
In a client alert, law firm Morgan Lewis reviews the One Big Beautiful Bill Act's Medicaid provisions that Democratic lawmakers, after midterm gains, may seek to repeal, delay or modify, though any changes would still require overcoming a presidential veto. The firm details CBO-projected cuts from provider tax restrictions ($191 billion), reduced state-directed payment limits ($149 billion), and new work requirements ($326 billion), totaling $911 billion through 2034, with work requirements projected to cause 5.3 million coverage losses. It also notes that four states, Oregon, Minnesota, New Mexico and Washington, filed suit on November 5 seeking to enjoin the work requirements ahead of their January 1, 2027 start date, after a separate suit by 26 state attorneys general was denied a preliminary injunction on October 29.