Capitol Correspondence - 09.05.23

Disenrollment of Medicaid Beneficiaries Raises Concerns Over Children’s Coverage

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The Kaiser Family Foundation in a new report has shed light on a concerning trend in Medicaid disenrollment, with more than 5.5 million beneficiaries losing their coverage. The analysis, based on the latest data from almost all states and Washington, DC, reveals a significant disparity in disenrollment rates among states, ranging from 72% in Texas to 8% in Wyoming. Notably, a substantial portion of those disenrolled faced coverage loss due to procedural issues, such as incomplete paperwork.

Among the 15 states that reported age-related data, a troubling trend has emerged, as 43% of those disenrolled were children. This statistic varies significantly from state to state, with Texas seeing the highest share of disenrolled children at 81%, while Massachusetts reports a much lower figure of 18%.

The situation has raised concerns for the Biden Administration, particularly regarding children inadvertently losing their health insurance coverage. The Centers for Medicare and Medicaid Services (CMS) addressed this issue last week, highlighting a problem in the eligibility review process within some states. Instead of reviewing an individual’s eligibility, some states may be assessing the entire family’s eligibility for Medicaid, resulting in a substantial number of individuals losing their coverage when they should have had their insurance renewed without the need for additional paperwork.