Which States Will Be Affected by Key Medicaid Provisions in the 2025 Reconciliation Law? - Takeaways - MDSpire
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Which States Face the Greatest Impact from Major Medicaid Changes in the 2025 Reconciliation Law?

  • By

  • Alice Burns

  • Jennifer Tolbert

  • Robin Rudowitz

  • Anthony Montano

  • October 7, 2026

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  • 1

    The CBO projected that the law would reduce federal Medicaid spending by $911 billion from 2025 through 2034 and increase the uninsured population by 7.5 million in 2034.

  • 2

    Medicaid expansion states face the greatest restrictions, including work requirements in 41 states and 6-month eligibility redeterminations for expansion adults.

  • 3

    Work requirements apply to certain adults in 44 states, including 3 states that did not adopt the ACA Medicaid expansion.

  • 4

    Beginning October 1, 2026, every state must restrict Medicaid eligibility for specified lawfully present immigrants, including some refugees and asylees without green cards.

  • 5

    Provider-tax restrictions affect every state, while limits on state directed payments cap future rates at or near Medicare rates; the rural health fund does not replace lost federal Medicaid support.

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