HHS Urges States to Avoid Unnecessary Coverage Loss, Threatens Enforcement

Starting April 1, states were once again allowed to start disenrolling people from Medicaid who no longer qualify. But after early indications that people are getting kicked off the roles for procedural reasons, the federal government this week offered a stern warning to states that may have been too quick to begin disenrollments.

Eligibility redeterminations were suspended during the COVID-19 public health emergency as a condition of states receiving higher federal funding. In that time, more than 20 million people joined Medicaid rolls nationwide, with enrollment soaring to 95.9 million lives as of May 2023, according to the latest update to AIS’s Directory of Health Plans (DHP). With millions of people standing to lose coverage with the resumed redeterminations, many in the health care industry feared lack of beneficiary knowledge about the renewal process could cause mass procedural disenrollments among those who are still eligible for coverage.

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