Millions Lose Coverage: Biden Administration Requests Employers’ Assistance

The Biden administration is urging companies to play a role in ensuring their employees maintain health insurance coverage, as millions of people across the U.S. are losing Medicaid coverage abruptly.

In a letter addressed to employers, Chiquita Brooks-LaSure, the head of the Centers for Medicare and Medicaid Services, emphasized the need for workers who have lost Medicaid coverage to be allowed to enroll in group health plans within the next year through a special enrollment period.

While companies are obligated to provide employees with a minimum of 60 days to enroll in their group health plans, Brooks-LaSure argues that this timeframe is insufficient considering the significant number of people losing their Medicaid coverage suddenly.

According to research conducted by KFF, a nonprofit focused on health issues, over 3 million people have lost Medicaid since April when coverage protections, implemented by Congress during the Covid-19 public health emergency, expired.

Medicaid is a health insurance program designed for individuals with lower incomes and is primarily administered by the states, although it receives substantial financing from the federal government.

During the pandemic, Congress barred states from disenrolling individuals from Medicaid in exchange for increased funding. As a result, Medicaid coverage reached a historic high of over 86 million people by March 2023, reflecting a 35% increase from February 2020.

With the expiration of these protections, states are now reassessing individuals’ eligibility for the first time in three years, leading to millions losing their health insurance.

As highlighted by Brooks-LaSure, many individuals may have overlooked notices from state agencies regarding the termination of their Medicaid coverage, only realizing they are uninsured when they visit a doctor.

The Department of Health and Human Services estimates that 3.8 million individuals who are expected to lose Medicaid coverage are eligible for employer-sponsored insurance. Additionally, 2.7 million individuals who are projected to lose Medicaid are eligible for subsidized insurance through the Affordable Care Act marketplaces.

CMS has established a special enrollment period allowing individuals to sign up for subsidized coverage through the Affordable Care Act insurance marketplaces until July 2024.