The proposed class action lawsuit, filed in Washington federal court
against the U.S. Department of Health and Human Services (HHS), says
the agency exceeded its authority under the federal Medicaid law
when it approved Kentucky's requirements earlier this month.
A spokesman for the Centers for Medicare & Medicaid Services, the
branch of HHS that oversees Medicaid, declined to comment. The
office of Kentucky Governor Matt Bevin did not immediately respond
to a request for comment.

Kentucky's new requirements mandate that able-bodied Medicaid
recipients participate in at least 80 hours a month of "employment
activities," including jobs training, education and community
service. The rules, which the state expects to begin implementing in
July, cover people from 19 to 64 years old, exempting some groups
including pregnant women and former foster care youth.
They were approved through a process that allows states to receive
"waivers" from federal Medicaid law to test new approaches to the
50-year-old program.
The plaintiffs said in their complaint that, rather than testing a
new approach, Kentucky had "effectively rewritten" the federal
Medicaid law.
In addition to work requirements, the state's program imposes
premiums on most Medicaid recipients based on income. Some who miss
a payment or fail to re-enroll will be locked out for six months.
Wednesday's lawsuit challenges those requirements as well. It was
filed by 15 Kentucky Medicaid recipients and seeks to represent a
class of Kentucky residents enrolled in the program since Jan. 18.
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The plaintiffs said they risked losing coverage under Kentucky's new
program. Several have variable work and inconsistent income, and
fear they will be unable to pay premiums or be locked out of
Medicaid after failing to meet requirements, according to the
complaint.
They brought claims under the federal Administrative Procedure Act
and the U.S. Constitution.
Attorneys at the National Health Law Program and Southern Poverty
Law Center, left-leaning national advocacy groups, are among those
representing the plaintiffs.
Kentucky was among 31 states that expanded Medicaid to those earning
up to 138 percent of the federal poverty level under the Affordable
Care Act, former Democratic President Barack Obama’s signature
domestic policy achievement.
More than 400,000 Kentucky residents gained health insurance through
the program, the highest growth rate of Medicaid coverage of any
state.

At least nine additional states, mostly Republican-led, have
proposed similar changes to Medicaid: Arizona, Arkansas, Indiana,
Kansas, Maine, New Hampshire, North Carolina, Utah and Wisconsin.
(Reporting By Brendan Pierson in New York; Editing by David
Gregorio, Bernadette Baum and Susan Thomas)
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