Enrollment in Medicaid is reduced by roughly 10 million halfway through “unwinding”

In the midst of what is anticipated to be the most significant reduction in Medicaid beneficiaries within a year, enrollment in the government-run health insurance initiative is poised to revert to approximately pre-pandemic levels. Medicaid, a program catering to low-income and disabled individuals, along with the associated Children’s Health Insurance Program (CHIP), swelled to a peak of 94 million enrollees due to a regulation preventing states from terminating coverage amid the nation’s public health crisis. However, since last April, states have eliminated over 16 million individuals from these programs in what is termed the “unwinding,” based on estimates by KFF derived from state-level data.

While many beneficiaries have become ineligible due to increased incomes, millions have been removed from the rolls for procedural lapses like non-responsiveness to notices or failure to submit paperwork. Conversely, millions have also been reenrolled or newly enrolled. Consequently, enrollment has decreased by approximately 9.5 million people from the record high in April, bringing Medicaid and CHIP enrollment back to an estimated 71 million individuals by the conclusion of the unwinding later this year, mirroring pre-pandemic levels.

Larry Levitt, executive vice president for health policy at KFF, noted the current scenario echoes the pre-pandemic era but on a larger and faster scale. Enrollment fluctuation has been typical in Medicaid, with around 1 million to 1.5 million individuals dropping off the rolls monthly before the pandemic, often due to failure to renew coverage.

Disenrollment occurred more rapidly and extensively during the unwinding than anticipated, surpassing the Biden administration’s predictions. KFF estimates suggest that disenrollments will likely exceed 17 million, with procedural issues accounting for 70% of the cases. However, approximately two-thirds of the almost 50 million beneficiaries with eligibility already reviewed have renewed their coverage, while one-third lost it.

Most states have been granted 12 months to complete the unwinding process, starting from the initial disenrollments between April and October of the preceding year. With historically low unemployment rates nationwide, individuals losing Medicaid coverage are more inclined to secure job-based or Obamacare marketplace coverage, mitigating the severity of the Medicaid drop.

Various factors such as state eligibility rules and communication efforts influence disenrollment rates. Alabama, for example, managed to maintain stability by effectively communicating the reapplication requirements to enrollees and increasing personnel to handle the surge. About 29% of beneficiaries in Alabama were disenrolled for procedural reasons.

Concerns persist regarding the steeper decline in Medicaid enrollment among children, who typically qualify at higher income levels. During the unwinding, 3.8 million children lost Medicaid coverage, posing challenges for families to reenroll them promptly.

The extent to which the disenrolled individuals are now uninsured remains uncertain. Utah, the sole state to survey the disenrolled, found that approximately 30% were uninsured, while others secured employer coverage or enrolled in subsidized plans through the Affordable Care Act marketplace.

Overall, the repercussions of the unwinding process on national Medicaid enrollment remain ambiguous.