Hinshaw Partners Discuss the Legal Obstacles of Proposed $880 Billion Medicaid Budget Cuts via Law360

April 8, 2025

Law360 Healthcare Authority recently featured insights from Hinshaw partners Robert Finley and Frank Mazzagatti regarding the implications of proposed Medicaid work requirements.

Mazzagatti and Finley addressed the complicated legal obstacles surrounding these mandates, noting potential federal Medicaid funding cuts following the recent passage of the U.S. House of Representatives' budget, which proposes a reduction of $880 billion in funding.

Finley remarked that "the legal scorecard remains undecided on the merits of new Medicaid work requirements." He suggested that previous legal challenges might resurface if new legislation is enacted, particularly concerning claims of discrimination against individuals with disabilities.

Mazzagatti added that while some lower courts have opposed such work requirements, the U.S. Supreme Court has "never issued a ruling supporting Medicaid work requirements, but it has dismantled prior opinions that staunchly opposed them."

Hinshaw & Culbertson LLP is a U.S.-based law firm with offices nationwide. The firm's national reputation spans the insurance industry, the financial services sector, professional services, and other highly regulated industries. Hinshaw provides holistic legal solutions—from litigation and dispute resolution, and business advisory and transactional services, to regulatory compliance—for clients of all sizes. Visit www.hinshawlaw.com for more information and follow @Hinshaw on LinkedIn and X.