State Errors May Have Caused Medicaid Coverage Loss for Many Children

Federal officials have uncovered significant errors in the systems and procedures used by some states to verify eligibility for Medicaid. These errors could result in a large number of children losing their health coverage, even though they are still eligible for it.

State agencies have been reversing a pandemic-era policy that allowed individuals to maintain their health insurance through Medicaid without regular eligibility checks. Since the rule expired in April, over a million children have lost coverage, despite having higher eligibility limits than adults.

In a letter to state Medicaid agencies, Daniel Tsai, a senior official at the Centers for Medicare and Medicaid Services, cautioned that technical errors might be responsible for many disenrollments.

During a press briefing, Mr. Tsai highlighted the specific systems glitch causing the problem and its potential impact on eligible families. The glitch relates to the automatic renewal process, known as “ex parte” renewals, which rely on databases to verify eligibility. Some states mistakenly sent renewal forms to all household members and removed individuals from coverage if the forms weren’t returned, including those who should have been deemed eligible.

This practice has disproportionately affected children, according to officials. The administration has instructed states to rectify their eligibility systems, temporarily halt removals, and reinstate those affected by the errors.

This confrontational action by federal officials represents a significant turning point since the unwinding process began, resulting in the loss of coverage for over 5.5 million people, as reported by KFF, a health policy research organization.

Although Mr. Tsai did not disclose the specific states affected, more than a dozen states believed they were impacted, according to a spokesperson from his agency.

Before April, states were forbidden from terminating Medicaid enrollment due to a provision in a congressional coronavirus relief package. However, after the policy ended, it has had catastrophic consequences for low-income families and children. Data from 15 states analyzed by KFF indicates that at least 1.1 million children lost Medicaid coverage.

The impact on children’s coverage remains unclear in certain states since data hasn’t been published yet. Given their higher eligibility limits for Medicaid and CHIP enrollment, children were expected to remain covered in greater numbers. Researchers at the Georgetown University Center for Children and Families estimated that over half of all children nationwide were covered by Medicaid or CHIP.

Joan Alker, the executive director of the Georgetown center, emphasized the importance of children having consistent access to care. She noted that children often require medical attention for treatable conditions such as ear infections and asthma. Gaps in coverage can have life-threatening consequences.

The loss of coverage among children is particularly prevalent in Texas, where the Medicaid program has not been expanded under the Affordable Care Act. Over 600,000 people in Texas, including a significant number of Medicaid-insured children, have lost coverage during the unwinding process. Kansas also witnessed a high proportion of children affected, with over half of Medicaid beneficiaries losing coverage.

Health care advocates in Kansas had urged Medicaid officials to use automatic eligibility checks during the unwinding process. However, the potential ramifications were not previously considered.

It is crucial for states to rectify these errors promptly to ensure eligible individuals, especially children, maintain access to essential health care services.

Reference

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