Summary
The Centers for Medicare & Medicaid Services (CMS) announced that new rules will limit federal Medicaid and CHIP funding for certain noncitizens starting October 1. States must update their systems to comply, affecting thousands who currently receive this coverage. States have the option to continue coverage using their own funds.
Key Facts
- The CMS has issued new guidance affecting Medicaid and CHIP funding for certain noncitizens.
- The rules are linked to the Working Families Tax Cut legislation, passed in 2025.
- Only U.S. citizens, nationals, lawful permanent residents, and certain migrants will receive federal support.
- Refugees, asylees, parolees, and trafficking survivors may lose federally funded benefits.
- States can choose to use state funds to continue coverage for affected groups.
- Emergency Medicaid will still receive federal funds regardless of immigration status.
- States must update eligibility and billing systems by October 1.
- The guidance aims to enforce federal law but could increase the number of uninsured people.
