Industry News

Medicaid Crisis: Post PHE

States are preparing to remove millions of people from Medicaid as protections put in place under the PHE expire. The upheaval, which begins in April, will put millions of low-income Americans at risk of losing health coverage. It will also put pressure on the finances of hospitals, doctors, and others relying on payments from Medicaid. Almost three years ago, the federal government agreed to send billions of dollars in extra Medicaid funding to states on the condition that they stop dropping people from their rolls. But, legislation enacted in December will be phasing out that money over the next year and calls for states to resume cutting off from Medicaid people who no longer qualify. With the rate of uninsured Americans at an all-time low, 8%, the course reversal will be painful. The Biden administration has predicted that 15 million people — 17% of enrollees — will lose coverage through Medicaid or CHIP, the closely related Children’s Health Insurance Program, as the programs return to normal operations.