Medicaid is the backbone of the nation’s health care system providing coverage to those for whom private insurance is not available or affordable and is now the primary coverage source (along with CHIP) for America’s children. Medicaid covers approximately 83.5 million people (including 34.2 million children) - a 31 percent increase since prior to the COVID-19 pandemic. This increase in enrollment reflects a federal protection (“continuous coverage”) that has been in place since March of 2020 whereby states cannot disenroll anyone from Medicaid involuntarily in exchange for an increase in the federal Medicaid matching rate. As a consequence of the Consolidated Appropriations Act,5 this federal protection will lift gradually on April 1, 2023. Eligibility will have to be checked for all 83.5 million people enrolled in Medicaid and approximately four million children whose coverage is financed by CHIP but provided through Medicaid. States have until May 2024 to complete this process - it is likely however that some states will act more quickly. This is commonly referred to as the “Medicaid unwinding.” In recognition of the risk of children becoming uninsured, the Consolidated Appropriations Act requires states to provide 12 months of continuous Medicaid and CHIP eligibility to children under age 19 beginning on January 1, 2024 if they do not already do so. Continuous eligibility, which is an existing state option, ensures that parents who take on extra shifts, receive a raise at work, or have seasonal employment do not risk losing their child’s Medicaid or CHIP coverage. Currently 17 states and the District of Columbia do not have continuous eligibility for Medicaid or CHIP for any children with additional states providing continuous eligibility only in one program or only for some children. Immediately implementing this provision for all children as unwinding takes place would be highly beneficial for children; otherwise, there will likely be a gap in coverage before this provision becomes effective. This continuous eligibility requirement does not apply to parents or other adults leaving low-income families exposed to unpaid medical debt and health care needs.
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