Medicaid coverage for millions ends this year; how to shop for new insurance on state Affordable Care Act marketplace
A sign points visitors to the financial services department at a hospital. Medicaid coverage will end for millions of Americans in 2023, and that pushes many into unfamiliar territory: the health insurance marketplace.
Medicaid coverage will end for millions of Americans in the coming months, which will push many people into unfamiliar territory: the health insurance marketplace.States will start cutting people from the government-funded plans when they no longer qualify based on income, a process that has been paused since shortly after the COVID-19 pandemic hit.The timing of these cuts will vary. But all states have insurance markets where people who lose Medicaid can buy new coverage with help from subsidies. Shopping for affordable insurance that covers regular doctors and prescriptions can be daunting, especially in marketplaces that offer dozens of choices and subsidies to help pay for them. Here's what you need to know.WHAT'S HAPPENING TO MEDICAID?Nearly 85 million people are covered by government-funded Medicaid, which focuses on people with low incomes.At the start of the COVID-19 pandemic, the federal government barred states from kicking people off Medicaid if they no longer were eligible. That ban ends this spring, and many people on Medicaid will be introduced to this so-called redetermination process for the first time.States already are verifying eligibility, with most expected to start ending coverage for ineligible people in May, June and July.Federal officials estimate that more than 8 million people will lose eligibility and be removed from Medicaid mainly because their incomes have changed.WHERE TO GET NEW COVERAGEState health insurance marketplaces created under the federal Affordable Care Act are the only places where people can buy individual insurance with help from an income-based subsidy. They can be found through the federal government's healthcare.gov website.You also can find coverage sold outside these marketplaces, but doing so can be risky. For instance, short-term plans can exclude coverage of certain things, such as a medical condition someone had before signing up.INCOME-BASED SUBSIDIESThe cost of any new plan should be one of the first things to consider. Shoppers can get income-based subsidies to help pay monthly premiums of plans they buy on the state marketplaces. Those subsidies were enhanced during the pandemic.Many people don't realize they can get this help, said


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