Health Policy Threats

September 30, 2025

Medicaid Cuts Imperil Guests’ Insurance

 

Federal

  • Coverage loss: 95,000 DC residents projected to lose coverage over the next decade due to federal Medicaid cuts.
  • Mandatory Medicaid work requirements starting December 31, 2026, or earlier
    Requirement: individuals must complete at least 80 hours per month of employment/volunteer work or be enrolled as at least a half-time student.
    Exemptions: Parents, guardians, or caregivers of a child age 13 or younger, a disabled individual, or medically frail individuals.
  • More frequent eligibility determinations starting January 1, 2027
    States must now verify Medicaid eligibility every 6 months, instead of annually, for adults on Medicaid.
  • Added out-of-pocket cost-sharing starting October 1, 2028
    Adults on Medicaid with incomes over 100% of the Federal Poverty Level ($15,650 for an individual) may now be subject to co-pays or deductibles for some services. Charges cannot exceed $35 per service and cannot exceed 5% of the family’s income.

Local

  • Medicaid eligibility threshold will be reduced from 210% to 138% of the FPL
    The change leaves about 25,000 DC residents ineligible for Medicaid.

Coverage Rollbacks Harm Immigrant Health

 

Federal

  • Medicaid Cuts: Coverage will end for some lawfully present immigrants, such as refugees, asylum seekers, parolees, and certain survivors of abuse or trafficking.
  • HHS Policy Restrictions
    The definition of “federal public benefits” under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) now includes 13 additional programs, restricting access for many lawfully present and undocumented immigrants. This includes limitations on community health centers, behavioral health care, and family planning services.

Local

  • Alliance Phase-Out
    The change leaves about 25,000 DC residents ineligible for Medicaid.

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