Preliminary data suggests that a considerable number of individuals enrolled in Medicaid have been removed from the program due to procedural issues, such as failure to complete eligibility verification paperwork or difficulty in locating individuals. As a result of these frequent procedural terminations, eligible people may lose their coverage.
Medicaid Coverage Unwinding
A provision in a coronavirus relief package from 2020 prevented states from removing Medicaid recipients until this spring, ensuring continuous coverage for individuals throughout the COVID-19 pandemic.
However, this coverage ended on the last day of March, leading to states reporting reductions in Medicaid coverage and highlighting the negative impact of the unwinding process on
disadvantaged and vulnerable populations, including children.
Nineteen states have already initiated the removal of Medicaid beneficiaries, resulting in the
loss of Medicaid coverage for 73,000 residents in Arkansas, including 27,000 children under the age of 17, in April.
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Administrative Discrepancies
Governor Sarah Huckabee Sanders, a Republican hailing from Arkansas, perceives the process of unwinding as an imperative measure to reduce expenses and uphold the primary purpose. She contends that Arkansas’s actions are motivated by a commitment to maintaining governmental accountability.
Medicaid, a program jointly financed by the federal and state governments, assumes a critical role in the American safety net, supporting approximately 95 million individuals, as reported by NPR. Its absence would shift the financial burden of doctor visits, hospital stays, prescription medications, and other medical procedures onto individuals, which could prove overwhelming for those with limited income and dependence.
Chiquita Brooks-Lasure, the Director of the Centers for Medicare Services (CMS), places significant emphasis on the agency’s endeavors to prevent eligible individuals from losing their coverage.
However, according to a recent projection from the health research group KFF, as many as 24 million people, including those who remain eligible but are ensnared in administrative inconsistencies, could face denials.
In order to tackle the unwinding process, the CMS mandates that states formulate operational strategies that prioritize renewals, establish deadlines, and minimize the loss of coverage. A survey conducted by KFF in January 2023 unveiled that states have implemented diverse plans to prepare for the termination of laws enabling continuous enrollment, with the majority of states expecting to conclude renewals within a span of 12-14 months.
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