The 2025 reconciliation law reduced federal Medicaid spending by an estimated $911 billion from 2025 through 2034, some of which stems from new restrictions on Medicaid state directed payments (SDPs) for hospital and other health care services. While states are generally prohibited from directing how managed care organizations (MCOs) pay for care, states can implement SDPs that require MCOs to increase rates or set minimum rates for specified Medicaid services. In authorizing SDPs, the Centers for Medicare and Medicaid Services (CMS) aimed to help states improve access to care and provider participation. Many states that contract with MCOs use SDPs to make uniform rate increases that function like supplemental payments in fee-for-service (FFS) Medicaid.

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The Trump administration has issued final rules on how states should ensure that millions of Medicaid enrollees prove they’re working or completing other activities, such as job training, volunteering, or being enrolled in an educational program.

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When Congress failed to extend the covid-era enhanced subsidies for the Affordable Care Act, many experts predicted millions of people would lose coverage because they would be unable to make payments toward the higher premiums. It has taken a few months, but that prediction seems to be coming true.

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SALT LAKE CITY — Ben Dowse hadn’t expected to treat measles when he became a doctor, but there he was, examining a newborn exposed to the virus in the womb. The infected mother had given birth just hours earlier. The hospital had alerted Dowse to the case before delivery, and he’d braced himself for the worst.

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The looming impact of federal Medicaid cuts has reignited a long-simmering, costly battle between California’s medical industry and one of its largest health worker unions.

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Nearly every Tuesday for a decade, Steve Siple attended a bar trivia night with friends in Birmingham, Alabama. After moving to North Carolina, he developed a new ritual — joining other Charlotte locals on Saturdays to pick up trash along the city’s light rail.

These are more than fun outings to Siple. They help keep him alive.

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The Trump Administration continues its focus on rooting out fraud, waste, and abuse in federal programs, including Medicaid. In March 2026, President Trump issued an Executive Order establishing the Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance. In May 2026, the Centers for Medicare and Medicaid Services (CMS) announced a six-month nationwide moratoria (or pause) on the enrollment of new Medicare hospice and home health agency providers. The Department of Health and Human Services (HHS) has also taken nationwide and state-specific action in the Medicaid program, including:

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More than 1 million children have lost insurance since President Donald Trump took office in 2025. Another million could lose it amid the Trump administration’s immigration crackdown and new Medicaid eligibility rules. On WAMU’s Health Hub on June 3, KFF Health News chief Washington correspondent Julie Rovner explained how fear and confusion complicate access to health coverage.

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Enrollment in Medicare Advantage, the private plan alternative to traditional Medicare, has increased steadily over the past two decades, with more than half of eligible beneficiaries enrolled in Medicare Advantage since 2023. The growth in enrollment has implications for federal spending, because according to the Medicare Payment Advisory Commission (MedPAC), Medicare payments to private plans are higher than spending for similar beneficiaries in traditional Medicare. In 2026, payments are 14% more per person, which translates into an additional $76 billion in federal spending this year. While payments per person relative to traditional Medicare are similar to a decade ago (15% higher), the impact on federal spending was substantially lower at $24 billion because enrollment was substantially lower with about one-third of eligible beneficiaries enrolled in a Medicare Advantage plan at that time.

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New rules out this week from the Trump administration for implementing work requirements for adult Medicaid recipients surprised many state officials. The rules make it more difficult for states to determine who should be exempt from the requirements, including by stipulating that having a serious condition such as HIV or cancer does not automatically excuse an enrollee from having to engage in 80 hours per month of paid work, volunteering, or school attendance.

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