Biden urges employers as 3.8M Americans face Medicaid loss.
Millions Transitioning to Medicaid Coverage: Employers Urged to Keep Employees Insured
The Biden administration has reached out to companies, urging them to prioritize the insurance coverage of their employees as they transition to Medicaid.
Amidst the ongoing COVID-19 pandemic, Medicaid coverage terminations were temporarily halted until March 31, 2023. Now, state Medicaid agencies are resuming regular operations, renewing coverage for eligible individuals, and terminating it for those who no longer qualify.
As a result of this transition, approximately 3.8 million individuals are expected to lose their Medicaid eligibility and may need to explore alternative coverage options, including employment-based coverage.
In a letter addressed to employers, Chiquita Brooks-LaSure, the administrator of the Centers for Medicare and Medicaid Services (CMS), emphasized the importance of providing individuals who have lost Medicaid coverage with the opportunity to enroll in group health plans through a special enrollment period over the next year.
“The Biden-Harris Administration is calling on employers and other plan sponsors to ensure that employees and their families remain connected to coverage, including through extending the period for special enrollment under the group health plans they sponsor,” Ms. Brooks-LaSure wrote in her letter (pdf).
Medicaid is a health insurance program designed to provide coverage for lower-income individuals. While the program receives significant financial support from the federal government, it is primarily administered by individual states.
Companies are legally required to offer their employees a minimum of 60 days to enroll in their group health plans. However, Ms. Brooks-LaSure argues that this timeframe is inadequate considering the large number of individuals who have recently lost Medicaid coverage.
“Given the exceptional circumstances surrounding the resumption of Medicaid and CHIP renewals for the first time in three years, many individuals will need more than the typical 60-day window after loss of Medicaid or CHIP coverage to apply for and enroll in other coverage,” she wrote.
According to KFF, a nonprofit organization focused on health research, over 3 million people from 33 states have lost their Medicaid coverage since April.
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