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Medicaid Health Insurance Renewal Saves Millions

Supporters hold up “Save Medicaid” signs during a Senate Democrats press conference on the Capitol with disability advocates against the Republican Graham-Cassidy health care bill.

Bill Clark | CQ-Roll Call Inc. | Getty Images

Nearly three million people have been excluded from Medicaid since COVID-19 pandemic protections expired in April, three-quarters of whom are still eligible for public health insurance programs but have lost coverage, according to data from health researchers. KFFMore.

Medicaid is a public health insurance program for low-income individuals and families. Although it receives significant funding from the federal government, most of its operations are carried out by state governments.

The widespread elimination of coverage is a worrying trend, as the complexity of the U.S. health care system means that people who lose one cover often struggle to find replacement coverage and are at risk of ultimately becoming uninsured.

About 75% of the 2.7 million people who lost Medicaid coverage in 32 states and Washington, D.C., were removed from the program because they hadn’t completed the process to renew coverage, according to the latest data released Monday.

This means that you may still be eligible for Medicaid, but your coverage may have been terminated.

Texas and Florida have the highest percentages of people who have been cut off Medicaid in recent months. In Texas, 500,000 people lost their insurance, 81% of whom had their insurance terminated because they did not complete the renewal process. 300,000 people in Florida lost their insurance, 65% of whom did not complete the paperwork.

Eleven states, including large states such as California and New York, will begin the renewal process for the first time in three years this month, so the number of people losing Medicaid coverage will only increase this month.

The U.S. Department of Health and Human Services estimates that up to 15 million people could lose their insurance if they did everything, but many of these people are expected to move to alternative insurance.

According to HHS, nearly 7 million people could lose Medicaid coverage despite remaining eligible for the program.

red tape

Congress has barred states from removing people from Medicaid in exchange for more funding during the COVID-19 public health emergency. As a result, Medicaid enrollment surged to a historic high of more than 86 million by March 2023, a 35% increase compared to February 2020, according to Centers for Medicare and Medicaid Services data.

Those Medicaid protections expired in April after lawmakers slipped a provision into the Federal Spending Act in December that allowed states to begin removing people who were disqualified from programs. Medicaid eligibility is primarily based on income.

But due to bureaucratic red tape, many are losing coverage. This often happens when the state contact information is outdated and the person cannot be contacted. They may also not understand how the renewal process works or may not have submitted their documents by the deadline.

Jennifer Tolbert, an expert on Medicaid and the uninsured at KFF, said it was especially difficult for people with limited English to prepare the paperwork to renew their Medicaid coverage.

CNBC Health & Science

Read the latest health coverage on CNBC.

HHS estimated last year that a third of people at risk of losing Medicaid were Hispanic and 15% were black. Current data from most states are not broken down by demographic group.

Also, many children are missing Medicaid coverage. At least 250,000 children have been deenrolled from Medicaid in Arkansas, Arizona, Indiana, Oklahoma, Virginia and Washington, according to the KFF. The national total could be higher, as many states do not provide information on the number of children without coverage.

alternative compensation

Medical experts fear that even people who do become ineligible for Medicaid, such as because of a change in income, may not be able to transition to other insurance companies or Affordable Care Act coverage, commonly known as Obamacare. People have to apply for Obamacare every year, but some may not know how the process works.

HHS is Special admission period Help those excluded from Medicaid find alternative coverage through Obamacare.

Health Secretary Xavier Becerra said in a letter to U.S. governors in June that he was deeply concerned about the number of people who would needlessly lose their Medicaid coverage.

Becerra urged the governor to do all he can to prevent people from losing their insurance for inevitable reasons. Since Becerra sent that letter, the number of people who have lost Medicaid has more than doubled.

HHS has the authority to prevent states from terminating Medicaid coverage for their citizens if they determine that local governments are not making sufficient efforts to verify an individual’s eligibility. CNBC reached out to HHS for comment on the latest data.

Tolbert said limited data from a few states showed fewer people were switching to other forms of insurance, but said this could change as more information comes in.

Tolbert said uninsured rates in the United States are likely to rise if people struggle to get back on Medicaid or have trouble transitioning smoothly to other coverage such as Obamacare.

Correction: Medicaid enrollment surged 35% from February 2020 to March 2023. An earlier version of the article incorrectly stated the growth rate. States are reviewing Medicaid eligibility for the first time in three years. Earlier versions of the story incorrectly stated the duration.

Summarize this content to 100 words Supporters hold up “Save Medicaid” signs during a Senate Democrats press conference on the Capitol with disability advocates against the Republican Graham-Cassidy health care bill.Bill Clark | CQ-Roll Call Inc. | Getty ImagesNearly three million people have been excluded from Medicaid since COVID-19 pandemic protections expired in April, three-quarters of whom are still eligible for public health insurance programs but have lost coverage, according to data from health researchers. KFFMore.Medicaid is a public health insurance program for low-income individuals and families. Although it receives significant funding from the federal government, most of its operations are carried out by state governments.The widespread elimination of coverage is a worrying trend, as the complexity of the U.S. health care system means that people who lose one cover often struggle to find replacement coverage and are at risk of ultimately becoming uninsured.About 75% of the 2.7 million people who lost Medicaid coverage in 32 states and Washington, D.C., were removed from the program because they hadn’t completed the process to renew coverage, according to the latest data released Monday.This means that you may still be eligible for Medicaid, but your coverage may have been terminated.Texas and Florida have the highest percentages of people who have been cut off Medicaid in recent months. In Texas, 500,000 people lost their insurance, 81% of whom had their insurance terminated because they did not complete the renewal process. 300,000 people in Florida lost their insurance, 65% of whom did not complete the paperwork.Eleven states, including large states such as California and New York, will begin the renewal process for the first time in three years this month, so the number of people losing Medicaid coverage will only increase this month.The U.S. Department of Health and Human Services estimates that up to 15 million people could lose their insurance if they did everything, but many of these people are expected to move to alternative insurance.According to HHS, nearly 7 million people could lose Medicaid coverage despite remaining eligible for the program.red tapeCongress has barred states from removing people from Medicaid in exchange for more funding during the COVID-19 public health emergency. As a result, Medicaid enrollment surged to a historic high of more than 86 million by March 2023, a 35% increase compared to February 2020, according to Centers for Medicare and Medicaid Services data.Those Medicaid protections expired in April after lawmakers slipped a provision into the Federal Spending Act in December that allowed states to begin removing people who were disqualified from programs. Medicaid eligibility is primarily based on income.But due to bureaucratic red tape, many are losing coverage. This often happens when the state contact information is outdated and the person cannot be contacted. They may also not understand how the renewal process works or may not have submitted their documents by the deadline.Jennifer Tolbert, an expert on Medicaid and the uninsured at KFF, said it was especially difficult for people with limited English to prepare the paperwork to renew their Medicaid coverage.CNBC Health & Science Read the latest health coverage on CNBC.HHS estimated last year that a third of people at risk of losing Medicaid were Hispanic and 15% were black. Current data from most states are not broken down by demographic group.Also, many children are missing Medicaid coverage. At least 250,000 children have been deenrolled from Medicaid in Arkansas, Arizona, Indiana, Oklahoma, Virginia and Washington, according to the KFF. The national total could be higher, as many states do not provide information on the number of children without coverage.alternative compensationMedical experts fear that even people who do become ineligible for Medicaid, such as because of a change in income, may not be able to transition to other insurance companies or Affordable Care Act coverage, commonly known as Obamacare. People have to apply for Obamacare every year, but some may not know how the process works.HHS is Special admission period Help those excluded from Medicaid find alternative coverage through Obamacare.Health Secretary Xavier Becerra said in a letter to U.S. governors in June that he was deeply concerned about the number of people who would needlessly lose their Medicaid coverage.Becerra urged the governor to do all he can to prevent people from losing their insurance for inevitable reasons. Since Becerra sent that letter, the number of people who have lost Medicaid has more than doubled.HHS has the authority to prevent states from terminating Medicaid coverage for their citizens if they determine that local governments are not making sufficient efforts to verify an individual’s eligibility. CNBC reached out to HHS for comment on the latest data.Tolbert said limited data from a few states showed fewer people were switching to other forms of insurance, but said this could change as more information comes in.Tolbert said uninsured rates in the United States are likely to rise if people struggle to get back on Medicaid or have trouble transitioning smoothly to other coverage such as Obamacare.Correction: Medicaid enrollment surged 35% from February 2020 to March 2023. An earlier version of the article incorrectly stated the growth rate. States are reviewing Medicaid eligibility for the first time in three years. Earlier versions of the story incorrectly stated the duration.
https://www.cnbc.com/2023/07/18/medicaid-health-insurance-renewals-result-in-millions-of-people-cut.html Medicaid Health Insurance Renewal Saves Millions

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