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| Montana will be the second state to implement Medicaid work rules. (Photo by John Kakuk, Unsplash) |
The state will be the second, after Nebraska, to require its residents to "prove they’re working to keep their coverage," reports Katheryn Houghton of KFF Health News. "That’s six months ahead of the federal deadline for states to implement Medicaid work rules for millions of enrollees."
The new work requirements are part of President Donald Trump's One Big Beautiful Bill Act, which Congress passed in 2025, but the onus of implementation falls on state health departments. Houghton explains, "The federal spending law requires states to check every six months whether millions of Medicaid enrollees work, go to school, or volunteer at least 80 hours a month, or qualify for an exemption."
Adding new staff and technology infrastructure to prepare for and execute work checks "takes time and money," Houghton writes. "Health policy analysts say that Montana’s budget crunch is a hint of the challenges to come nationwide."
The OBBBA also cut federal Medicaid dollars flowing to states by around $1 trillion over 10 years. The lopped-off funds represent the "largest pool of federal funding for states," Houghton explains. Joan Alker, a researcher focused on health coverage, told KFF, "States are the ones that are gonna have to do the dirty work of implementing cuts."
To address its shortfall, Montana plans to "stall rate increases for healthcare providers that were due July 1," KFF reports. However, clinicians say they need the rate bump to address staffing shortages and growing patient waitlists, which they attribute to already low Medicaid reimbursement rates.
Montana residents currently face long wait times to "access public assistance," Houghton adds. "And many can lose coverage at renewal time because of paperwork issues. … All these problems reflect a national challenge to connect people to care through strained public assistance programs."




