BURLINGTON – A North Carolina Medicaid enrollee has joined a federal lawsuit challenging restrictions on medical exemptions from new work requirements, raising a coverage issue as the state prepares to implement the requirements Jan. 1.
Lauren Bush of Burlington is among five Medicaid enrollees who joined medical organizations and Columbus, Ohio, in the Sept. 18 lawsuit filed in federal court in Maryland.
Plaintiffs argue the rule unlawfully narrows Congress’s medical exemptions by requiring people with serious health conditions to show that those conditions significantly impair their ability to meet the work requirements.
The complaint says Bush has Type 1 diabetes and relies on Medicaid for treatment she could not otherwise afford. Those descriptions are allegations in the complaint.
The lawsuit asks the court to block and set aside the challenged provisions. Filing it does not itself suspend them.
The Centers for Medicare & Medicaid Services describes the rule as a framework intended to promote economic stability and independence through work, education, job training and community service. The agency says exemptions cover several groups, including people who are pregnant, disabled or medically frail and certain parents and caregivers. CMS also announced $200 million in grants to help states modernize systems and develop the administrative capacity to implement the requirements.
NC Medicaid’s current guidance says the new work rule begins Jan. 1, 2027, for affected adults ages 19 through 64. It describes an 80-hour monthly requirement involving work, school or volunteering and lists exceptions, including disability, pregnancy and parents of children younger than 14.
The state also tells affected enrollees to expect eligibility renewals every six months instead of annually. It advises beneficiaries to keep their address and telephone number current with their local Department of Social Services and respond promptly to notices.
The lawsuit’s exemption challenge concerns federal rules that North Carolina must administer statewide. The state’s published guidance continues to list the January start date.
Sources
- Taylor v. Kennedy complaint, filed Sept. 18
- Centers for Medicare & Medicaid Services, June 1
- NC Medicaid: Changes in 2026-27
Photo Credit: Eli Pousson/Baltimore Heritage via Wikimedia Commons, CC0 1.0. Edward A. Garmatz U.S. Courthouse sign, Baltimore; photographed May 10, 2019. Public domain dedication: https://creativecommons.org/publicdomain/zero/1.0/
Editor’s Note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.

