15 Million Americans Could Soon Lose Medicaid Coverage

Now that the worst of the pandemic is in the rearview mirror, a number of emergency measures designed to help low-income families are coming to an end. These include extra food benefits and changes to Medicaid enrollment. The last of the emergency food benefits were paid out in February. And in some states, people will start to lose their Medicaid coverage this month.

What's going on with Medicaid?

In normal times, people move in and out of Medicaid depending on changes to their income or situations. But during the height of COVID-19, the government stopped states from taking away people's Medicaid and Children's Health Insurance Program (CHIP). That meant that for almost three years, many low-income Americans benefited from continuous coverage.

That provision is now ending and some states have already started to unenroll people. It's a year-long process and the timing varies from state to state. Arizona, Arkansas, Idaho, New Hampshire, and South Dakota were the first to begin withdrawing Medicaid this month. Oregon won't start until October, according to Medicaid documents.

The trouble is that many of the millions of Americans who could lose their coverage will still be eligible. A document from the Assistant Secretary for Planning and Evaluation (ASPE) estimated that around 15 million people would leave the program. Of those, it says around 7 million will be lost through what it calls "administrative churning." Or to put it in plainer language, they will fall through the cracks even though they still qualify.

The Urban Institute puts the figure even higher. It thinks around 18 million people will lose their coverage in the coming 14 months. The issue is that people may not complete their paperwork on time, particularly those who have changed addresses and don't receive the message. There are other groups at higher risk of losing their coverage. These include people with disabilities and those who don't speak native English or otherwise struggle with bureaucracy.

What you can do about your Medicaid coverage

If you are worried about losing your coverage, the most important thing you can do is make sure your details are correct in the system. This includes your phone number, email address, and home address. Contact your state Medicaid office to find out what's going on in your state and get clarification if you need it.

Watch out for any communication about your Medicaid coverage. You'll generally only have 30 days to return the paperwork. You may need to provide additional information on your finances or home situation. Bear in mind that this is an ongoing process. States won’t contact every Medicaid recipient in April, they’ll reach out to batches of people in the coming months.

If you are no longer eligible for Medicaid, you may need to find alternative health insurance. Here are some options to check out:

• Health Insurance Marketplace: Apply to the Affordable Care Act's Marketplace to get a reduced-cost health plan, depending on your state, household income and size.
• Medicare: If you're over 65, you may be able to enroll for Medicare. There's a special enrollment process in place so people who've recently lost Medicaid can sign up without paying a penalty. You have six months from the end of your Medicaid coverage to complete the process.
• CHIP: Your children may still qualify for the Children's Health Insurance Program, even if you are not eligible for Medicaid. Apply or reapply to find out if this is the case.
• Employer health plan: Find out whether you qualify for health insurance at work or through your partner's work.

Finally, if you are bumped from the Medicaid program and don't agree with the decision, you can appeal. Sadly, that may not be as straightforward as it sounds -- you may have to put in a lot of legwork, as the current unwinding work means Medicaid offices are swamped.

Bottom line

The end of extra pandemic-related support will have a big impact on the bank accounts of many low-income households. If you're not sure where you stand, start by contacting your local Medicaid office. You can call the United Way at 211, as it may be a good source of additional help. They can tell you more about your options and help you navigate the changing waters of affordable healthcare.