Medicaid Changes in 2023 Mean 15 Million Will Lose Coverage

Almost 15 million people will lose their Medicaid health insurance at midnight on March 31, 2023. That’s when the COVID-19 pandemic era rule to provide Medicaid recipients with “continuous enrollment” ends.

The Medicaid changes in 2023 result from the Consolidated Appropriations Act of 2022, passed by Congress in December. The Act requires all people currently enrolled in Medicaid to re-apply for the program, something they haven’t had to do since 2020.

Medicaid recipients usually have to apply to renew their coverage every year, and if their financial situation changed, they would be kicked out of the program. But in 2020, Congress passed the Families First Coronavirus Response Act (FFCRA), which required states to provide continuous enrollment for Medicaid recipients, regardless of whether their eligibility changed.

The bill passed by Congress last December ends that rule. Starting April 1, 2023, states are allowed to resume their Medicaid renewal application processes and deny people coverage if they are no longer eligible. At least 23 states have already started the Medicare “unwinding” process, but they aren’t officially allowed to unenroll recipients until April 1. Another 28 states will begin the process in April, CNBC reports.

In the unwinding process, state Medicaid offices are required to notify enrollees by mail about the need for them to reapply for the program. A Medicaid recipient has at least 30 days to respond to the renewal notice and 10 days to respond to a notice of termination, CNBC reports.

The Kaiser Family Foundation (KFF) estimates that between 5 million and 15 million people will lose their Medicaid coverage over the next year. People who are at the greatest risk of losing coverage are those with limited English proficiency, people with disabilities, and people who have moved within the last three years, KFF reports.

If you’ve increased your income, received healthcare coverage through an employer, or moved to a different state, you may no longer be eligible for Medicaid. If you've moved since the start of the COVID-19 pandemic, you should make sure that Medicaid has your current address, phone number, and email so that you can be notified of any changes in your coverage.

There are other options for affordable healthcare if you are denied Medicaid coverage. For example, you may be eligible to receive discounted healthcare coverage through the Affordable Care Act Marketplace (i.e., Obamacare). The ACA Marketplace has opened a special enrollment period for those who lose their Medicaid coverage.

Between March 31 and July 31, 2023, you can apply for healthcare coverage on the HealthCare.gov website. You have up to 60 days after you lose your Medicaid coverage to apply for health insurance through the ACA Marketplace.

Children no longer eligible for Medicaid may qualify for healthcare coverage through the Children’s Health Insurance Program (CHIP). CHIP provides low-cost healthcare coverage for children whose families earn too much money to qualify for Medicaid.