The Centers for Medicare & Medicaid Services (CMS) has issued an interim final rule requiring certain Medicaid recipients to complete at least 80 hours per month of work, education, or community service to maintain their eligibility, starting January 1, 2027. CMS Administrator Mehmet Oz stated that the initiative aims to ensure that able-bodied enrollees transition to employer-sponsored health plans, thereby freeing up space for vulnerable populations. The requirement specifically targets non-pregnant adults aged 19 to 64 enrolled in Medicaid expansion or specific demonstration programs. Exemptions are available for pregnant individuals, medically frail beneficiaries, and veterans with disabilities, among others. States are tasked with monitoring compliance and conducting outreach, while beneficiaries who fail to comply will receive a 30-day notice to demonstrate compliance or claim an exemption before losing coverage. This rule is part of a broader legislative effort that could see 7.5 million individuals losing Medicaid coverage by 2034 as states adapt their systems to these new requirements.