To amend title XIX of the Social Security Act to establish a community engagement requirement for certain individuals under the Medicaid program.

Exemptions for Vulnerable Groups: The bill provides that certain individuals do not have to meet the engagement requirement, which includes people under 18, over 65, those who are pregnant, or those who are the parent or caretaker of a dependent or incapacitated person (Section 1(b)(1)(A)).

Health and Wellness Support: Individuals participating in a drug or alcohol treatment and rehabilitation program are considered exempt from the requirement (Section 1(b)(1)(A)(vii)).

Support for Students: People enrolled in an educational program at least half time are exempt from the engagement requirement (Section 1(b)(1)(A)(viii)).

Medical Protections: Individuals who are determined to be physically or mentally unfit for employment by a medical professional are exempt from the requirement (Section 1(b)(1)(A)(ii)).

Efficient Verification: To reduce the burden on the individual, the bill states that State Medicaid agencies should prioritize using existing databases and reliable information sources for verification whenever possible (Section 1(b)(1)(2)).

Financial Impact on Medicaid Funding: Federal financial participation may not be available for medical assistance provided to an individual if they fail to meet the engagement requirement for three or more months in a year (Section 1(a)(3)).

Risk of Losing Coverage: States have the option to disenroll an applicable individual for a month if the requirements are not met (Section 1(c)).

Strict Time and Income Requirements: To satisfy the engagement requirement, individuals must meet specific thresholds, such as working 80 hours or earning income equal to the Federal minimum wage multiplied by 80 hours (Section 1(b)(1)(A)).