Governors urge delay of new Medicaid implementation rules

Oregon Governor Tina Kotek, alongside the governors of California, Maine, New Mexico, and Virginia, has requested a delay in the implementation of new Medicaid rules scheduled for January 1. The governors sent a letter to Health and Human Services Director Robert F. Kennedy Jr. arguing that the new reporting and eligibility requirements, passed by Congressional Republicans in a 2025 tax and spending bill, require more than the remaining three months to implement.

The governors stated that the final rules issued by Kennedy fundamentally change the system logic and processes that states have been preparing for over a year. They expressed concern that the short timeline prevents states from adequately rebuilding and testing systems, training workers, and ensuring lawful coverage determinations.