Medicaid Changes Coming in 2027: What This Could Mean for Disability Applicants

Major changes to Medicaid are scheduled to begin January 1, 2027. These changes could be important for people who are applying for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), especially those who also need Medicaid to pay for medical care.

Under the new federal rules, some adults ages 19 through 64 will have to complete at least 80 hours each month of work, community service, education, or certain job-training activities to qualify for or keep Medicaid. Some people will be exempt, including certain people with serious health conditions or disabilities. However, applicants may have to provide information showing that they qualify for an exemption.

This could create an important issue for people applying for disability benefits. An SSDI or SSI application does not automatically mean a person is exempt from Medicaid requirements. However, medical records and other evidence used during a disability claim may also help document a person's health limitations. Applicants should carefully respond to Medicaid requests for information and report any applicable exemption.

Another major change is more frequent Medicaid renewals. Many adults in the affected Medicaid expansion group will have their eligibility reviewed every six months instead of once a year. Medicaid applicants may also have less time to receive coverage for medical bills from before they applied. 

For people waiting for an SSI or SSDI decision, these changes could make it especially important to keep medical appointments, save medical records, respond to Medicaid notices, and report changes on time. SSI recipients may have a particularly important connection to Medicaid because Medicaid eligibility can be tied to SSI in many states.

The exact impact will depend on a person's age, disability status, Medicaid category, income, and state. People applying for disability benefits should consider checking both Social Security and their state Medicaid agency for current requirements.

If you are seeking assistance with applying for Social Security Disability Insurance and/or Supplemental Security Income benefits, please contact our office today for a free telephone consultation with Attorney Melissa Green to discuss your rights and options.