When the federal government declares the COVID-19 public health emergency to finally be over, as many as 15 million individuals could lose their health insurance coverage through Medicaid, according to a new study, which would likely result in a lot more medical debt to be collected for the accounts receivable management industry.
Enrollment in Medicaid has grown substantially during the pandemic, mostly as a result of individuals who have lost their jobs and the continuous coverage requirement of the Families First Coronavirus Response Act. States have been prohibited from disenrolling individuals from Medicaid for the duration of the public health emergency. But once the declaration expires, which could happen as soon as later this year, that prohibition will also expire, eliminating any form of health insurance for 6 million children and nearly 9 million adults.
The authors of the study are encouraging states to gradually disenroll individuals, giving them more warning and time to find other forms of coverage. About 5 million of those 15 million who will lose coverage would likely be eligible for the Affordable Care Act’s Marketplace premium tax credits, if the enhanced credits in the American Rescue Plan are made permanent. While most of those who will be losing Medicaid coverage would have access to other forms of health insurance, those individuals “would generally pay more for that coverage” and may need assistance, the researchers wrote in their report.
States will have 12 months to return to normal income eligibility requirements for Medicaid once the public health emergency is declared to be over, but some states will likely move faster, the researchers predicted.
“A growing body of evidence finds that Medicaid coverage saves lives and increases families’ financial stability,” the researchers wrote. “Large-scale, rapid Medicaid disenrollment during a time when families will still be trying to deal with the pandemic’s health and economic consequences could have serious effects on the health and financial well-being of millions of people.”
