Thousands lose Medicaid over 'red tape' issues'Red tape,' - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
July 31, 2023 Newswires
Share
Share
Post
Email

Thousands lose Medicaid over 'red tape' issues'Red tape,'

Winston-Salem Journal (NC)

JEFERSON CITY, Mo. - The nation's top health official implored states to do more to keep lower-income residents enrolled in Medicaid, as the Biden administration released figures Friday confirming that many who had health coverage during the coronavirus pandemic are now losing it.

Though a decline in Medicaid coverage was expected, health officials are raising concerns about the large numbers of people being dropped from the rolls for failing to return forms or follow procedures.

In 18 states that began a post-pandemic review of their Medicaid rolls in April, health coverage was continued for about 1 million recipients and terminated for 715,000. Of those dropped, 4 in 5 were for procedural reasons, according to newly released data from the federal Centers for Medicare and Medicaid Services.

Health and Human Services Secretary Xavier Becerra sent a letter Friday to all governors encouraging them to bolster efforts to retain people on Medicaid. He particularly encouraged them to use electronic information from other federal programs, such as food stamps, to automatically confirm people's eligibility for Medicaid. That would avert the need to mail and return documents.

"I am deeply concerned about high rates of procedural terminations due to 'red tape' and other paperwork issues," Becerra told governors.

During the pandemic, states were prohibited from ending people's Medicaid coverage. As a result, Medicaid enrollment swelled by nearly one-third, from 71 million people in February 2020 to 93 million in February 2023. The prohibition on trimming rolls ended in April, and states now have resumed annual eligibility redeterminations that had been required before the pandemic.

The new federal data captures only the first month of state Medicaid reviews from states that acted the most expeditiously. Since then, additional states also have submitted reports on those renewed and dropped from Medicaid in May and June.

Though the federal government hasn't released data from the most recent reports, information gathered by The Associated Press and health care advocacy groups show that about 3.7 million people already have lost Medicaid coverage. That includes about 500,000 in Texas, around 400,000 in Florida and 225,000 in California. Of those who lost coverage, 89% were for procedural reasons in California, 81% in Texas and 59% in Florida, according to the data.

Many of those people may have still been eligible for Medicaid, "but they're caught in a bureaucratic nightmare of confusing forms, notices sent to wrong addresses and other errors," said Michelle Levander, founding director of the Center for Health Journalism at the University of Southern California,

Top CMS officials said they have worked with several states to pause Medicaid removals and improve procedures for determining eligibility.

South Carolina is one state that voluntarily slowed down. It reported renewing Medicaid coverage for about 27,000 people in May while removing 118,000. Of those dropped, 95% were for procedural reasons. In a recent report to the federal government, South Carolina said it removed no one from Medicaid in June because it extended the eligibility renewal deadline from 60 days to 90 days.

Michigan reported renewing more than 103,000 Medicaid recipients in June and removing just 12,000. It told the federal government that the state opted to delay terminations for those who failed to respond to renewal requests while instead making additional outreach attempts. As a result, the state reported more than 100,000 people whose June eligibility cases remained incomplete.

People who are dropped from Medicaid can regain coverage retroactively if they submit information within 90 days proving their eligibility. But some advocacy groups say that still poses a challenge.

"State government is not necessarily nimble," said Keesa Smith, executive director of Arkansas Advocates for Children and Families. "When individuals are being disenrolled, the biggest concern ... is that there is not a fast track to get those individuals back on the rolls."

Arkansas officials have been at the forefront of defending Medicaid cuts. They contend that many people likely don't return forms because they no longer need Medicaid.

People are "transitioning off of Medicaid" because "they are working, making more money, and have access to health care through their employers or the federal marketplace," Arkansas Medicaid Director Janet Mann said earlier this month. "This should be celebrated, not criticized."

Insurance companies that run Medicaid programs for states said they are trying to reduce procedural terminations and enroll people in new plans.

Federal data for April indicates that some states did a better job than others at handling a crush of questions from people about their Medicaid coverage.

In 19 states and the District of Columbia, the average Medicaid call center wait time was 1 minute or less in April. But in Idaho, the average caller to the state's Medicaid help line waited 51 minutes. In Missouri, the average wait was 44 minutes, and in Florida 40 minutes.

Older

US price and wage increases slow further in the latest signs of cooling inflation

Newer

Survey says 1 in 4 Floridians would ignore evacuation warnings

Advisor News

  • How smart investments prepare clients for inflation
  • Amid slew of corporate tax ideas, Newsom chose one likely to hit people’s premiums
  • The biggest risk to your clients’ financial plans isn’t market volatility
  • Initiative looks at how caregiving impacts workplace benefits
  • Will rising retirement needs spark an annuity boom?
More Advisor News

Annuity News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Fortitude Re Completes $500 Million FABN Issuance
  • Reframing retirement income for greater certainty
  • Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
More Annuity News

Health/Employee Benefits News

  • Fairview says seniors with UnitedHealth Medicare plans will lose access to its hospitals, clinics
  • 'I just live in fear every day': Vancouver woman struggles to manage on Social Security Disability Insurance benefits
  • Seniors with UnitedHealth Medicare Advantage may lose access to Fairview hospitals, clinics
  • Report finds high denial rates at UnitedHealth, two other Medicare Advantage plans
  • PHISHING ATTACK PUT VHC HEALTH PATIENTS' MEDICAL RECORDS, PERSONAL INFORMATION AT RISK
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Issue Credit Ratings of Weston2038 LLC’s Credit-Linked Notes
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Greg Lindberg moves to halt $1.65B restitution order, claims he ‘overpaid’
  • Fidelity Investments® to Expand Target Date Lineup With Launch of Guaranteed Income Solution
  • KBRA Releases Research – Private Credit: Much Ado About Nothing – Perspectives on Columbia Business School Paper About Private Ratings
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Looking for stronger rates, amplified growth & real results?
Sentinel's Accumulation Protector Plus℠ Annuity is for clients wanting more from retirement planning

Press Releases

  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet