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ODM to Implement Medicaid Work Requirements: What Providers and Medicaid Expansion Recipients Need to Know

Client Alert

On March 11, 2025, Ohio Department of Medicaid (ODM) Director Maureen Corcoran appeared before the Senate Medicaid Committee to testify in support of Senate Concurrent Resolution 5 (SCR5) which urges the Trump Administration to approve ODM’s waiver that seeks to impose work requirements for the Medicaid expansion population in Ohio.

Doctor using virtual screen presses text: MEDICAID EXPANSION.

On February 28, 2025, ODM formally submitted its Section 1115 Demonstration waiver (the “waiver”) to the Centers for Medicare & Medicaid Services (CMS) to implement new work requirements for the Medicaid expansion population (also known as “Group VIII” recipients). Group VIII coverage includes adults ages 19 to 64 who are not eligible through other Medicaid categories and who make less than 138% of the federal poverty level (which, in 2025, is roughly $21,597 for a single person).

The state legislature included language in the budget bill passed two years ago that requires ODM to implement new eligibility criteria for Group VIII recipients. The new limitations memorialized in the waiver ODM recently submitted require that, to qualify for enrollment in Group VIII, a recipient must satisfy at least one of the following criteria:

  1. Be at least 55 years of age;
  2. Be employed;
  3. Be enrolled in school or an occupational training program;
  4. Be participating in an alcohol and drug addiction treatment program; or
  5. Have intensive physical health care needs or serious mental illness.

ODM was recently notified that the state’s waiver application has satisfied the completeness review and is now undergoing its federal public comment period. The comment period will end on April 7, 2025, and then the state’s waiver application will enter the review and negotiation period and formal review period. If the waiver is approved as submitted, the waiver’s first demonstration year will begin on January 1, 2026.

If you have questions about ODM’s proposed work requirements, or Group VIII coverage, or would like to submit comments to the federal government, please reach out to BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com or BMD Attorney Jordan Burdick at jaburdick@bmdllc.com.


Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.