White House warns paperwork causing Americans to lose Medicaid coverage
White House warns paperwork causing Americans to lose Medicaid coverage
The Bureaucratic Nightmare: Americans Losing Medicaid Coverage Due to Paperwork Issues
Large numbers of Americans who were dropped from Medicaid this spring lost their coverage because of paperwork problems, and not because they weren’t still eligible for the public health insurance program.
“I am deeply concerned about high rates of procedural terminations due to ‘red tape’ and other paperwork issues,” Health and Human Services Secretary Xavier Becerra wrote in a letter sent Friday to all governors, the Associated Press reported.
The changes are happening now because a prohibition on removing Medicaid coverage during the pandemic has now been lifted. States have now begun doing annual eligibility redeterminations.
The Problem of Procedural Terminations
When the COVID-19 pandemic hit, a prohibition on removing Medicaid coverage was put in place to ensure that vulnerable populations did not lose access to healthcare services. However, as this protection has been lifted, states have started conducting annual eligibility reviews, resulting in a significant number of people losing their Medicaid coverage.
Among the 18 states that began this review in April, approximately 1 million people continued to receive their health coverage, but unfortunately, another 715,000 lost that coverage. Disturbingly, in four out of five cases, this loss was primarily due to procedural reasons, such as paperwork problems.
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The data from the federal U.S. Centers for Medicare and Medicaid Services reveals the severity of these procedural terminations. These terminations have led to a reduction in the number of people covered by Medicaid, from nearly 93 million people in February 2023 to only 71 million people in February 2020.
The Bureaucratic Nightmare
Many individuals find themselves caught in a bureaucratic nightmare of confusing forms, notices sent to wrong addresses, and other errors. Michelle Levander, the founding director of the Center for Health Journalism at the University of Southern California, has highlighted that these issues could be preventing eligible individuals from retaining their Medicaid coverage.
Furthermore, the data suggests that certain states have been more efficient in answering questions about Medicaid coverage, with an average call center wait time of one minute or less in 19 states and Washington, D.C. However, other states have much longer wait times, such as 51 minutes in Idaho, 44 minutes in Missouri, and 40 minutes in Florida.
Soaring Medicaid Losses
According to data collected by the Associated Press and health care advocates, approximately 3.7 million people have already lost Medicaid coverage, with significant losses reported in Texas, Florida, and California. Texas has experienced around 500,000 Medicaid cuts, followed by Florida with 400,000 and California with 225,000.
In California, 89% of the cuts were due to procedural reasons, while in Texas, it was 81%, and in Florida, it was 59%. The magnitude of these losses emphasizes the urgent need for Medicaid programs to address the issues causing the procedural terminations.
A Slow Path to Resolution
Even though individuals who have been incorrectly dropped from Medicaid can regain their coverage if they prove eligibility within 90 days, advocates raise concerns about the difficulties faced during this process. They argue that state governments are not necessarily nimble, making it challenging to quickly reinstate individuals who have been unjustly dis-enrolled from the program.
For instance, South Carolina extended its eligibility renewal deadline from 60 days to 90 days, providing individuals with additional time to navigate the reinstatement process. In Michigan, more than 103,000 Medicaid recipients were renewed in June, while 12,000 were removed. However, with over 100,000 incomplete eligibility cases in the same month, there are lingering issues that must be addressed.
Alternative Solutions
As the states grapple with the bureaucratic challenges, insurance companies that administer Medicaid programs have taken steps to mitigate the impact on people’s health coverage. For example, Molina Healthcare, a multi-state insurer, is actively enrolling those dropped from Medicaid into individual insurance plans sold through state-based marketplaces.
These alternative solutions provide a temporary safety net, ensuring that individuals still have some form of health coverage while they navigate the complexities of reestablishing their Medicaid eligibility. However, these efforts do not entirely address the underlying issue of procedural terminations and the need for systemic improvements.
In conclusion, the high rates of procedural terminations due to paperwork issues in Medicaid have caused significant challenges for eligible individuals. The process of conducting annual eligibility reviews has led to a surge in the number of people losing their coverage, primarily for procedural reasons. These bureaucratic nightmares have left many caught in a web of confusing forms, errors, and unfortunate consequences. It is vital for state Medicaid programs to streamline their processes, reduce bureaucratic red tape, and provide viable solutions for individuals to promptly regain their rightful coverage. Moreover, collaboration between state programs, federal agencies, and insurance companies can help ensure that Americans do not fall through the cracks of an already complex healthcare system.
Sources:
- Large numbers of Americans Losing Medicaid Coverage Due to Paperwork Problems
- U.S. Department of Health and Human Services – Medicaid Eligibility
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- Source: Associated Press
