Proposed federal Medicaid work requirements will include some exceptions for individuals with mental health and substance use disorders.
The House passed President Donald Trump’s One Big Beautiful Bill Act on May 22. The package includes significant cuts to Medicaid.
The bill would implement requirements for able-bodied adults ages 19-64 to prove they work at least 80 hours a month, or participate in other qualifying activities, to receive Medicaid benefits.
The bill also lists an inpatient psychiatric hospitalization as a “short term hardship event” that exempts individuals from work requirements during the month in which the event occurs.
The program exempts Native Americans, full-time caregivers, disabled veterans and other disabled individuals from work requirements. Substance use disorders and disabling mental disorders are included among these exceptions.
Medicaid covered 40% of psychiatric inpatients in 2024, according to KFF Health News.
Chris Hunter, CEO of Acadia Healthcare, told investors he is optimistic many of the health system’s patients will be exempt from work requirements.
“We continue to believe the patient populations that we serve, including some of the highest-acuity mental health issues in the country, are going to be relatively less impacted in terms of the risk of losing Medicaid access,” he said on a May 13 earnings call.
