October 7, 2022

States receive billions in extra federal Medicaid funds during pandemic

3 min read

Extended funding comes from the Corona virus relief initiative passed by Congress in March 2020. This gives states a 6.2 percentage point increase in their federal match rate for most registrants. In return, states are not allowed to inadvertently exclude residents from Medicaid coverage during a public health emergency, which is currently due to end in mid-July.

This protection is led. Balloon entry – Caesar predicts that it will reach 110.3 million by the end of fiscal year 2022 on September 30, which is 25% more than the fiscal year 2019 before the onset of epidemic diseases.

According to the Kaiser analysis, states are expected to spend a total of $ 47.2 billion from fiscal year 2020 to fiscal year 2022 to meet the additional people enrolled in Medicaid due to the continuing need for coverage. The increased federal match estimate is higher than that period.

According to one, about two-thirds of states say they are using federal funding to address Medicaid or general budget deficits and reduce benefits and supplier rates. Caesar’s separate report. The additional federal funds allow states to spend more of their funds on other needs, such as education, than their share of Medicaid spending.

Support for states

Better Medicaid funding is one of the many ways in which the federal government has invested in state coffers during epidemics. Lawmakers have also provided a total of 500 500 billion. Assistance to state and local governments In the other two aid packages, though, their economies did not suffer as much as initially feared.
In fact, there are many states. Flush with funds – Thanks in large part to a wide array of Federal epidemic relief efforts. And there are more – than expected tax revenues. Tax cuts.

Robin Rodowitz, director of Kaiser’s program, co-author of Medicaid and Uninsured, said the enhanced Medicaid match was designed to provide increasingly broad funding for states. The federal government has also temporarily increased match rates as part of the 2009 American Recovery and Reinvestment Act to help states cope with the economic consequences of the Great Depression.

The number of registrants after the end of the emergency is low.

Caesar projects. Medicaid Enrollment Between fiscal year 2019 and the end of fiscal year 2022, there will be an increase of 22.2 million people.

But it is hoped that after the end of the public health emergency and states will once again be allowed to review eligibility for coverage – which could begin as early as August 1 if the declaration is not renewed. ۔

Between 5.3 million and 14.2 million people could be released during fiscal year 2023, with the highest losses occurring in low-income adults who are eligible under the Medicaid extension, some other adults and ChildrenCaesar estimates. The data is “extremely uncertain,” it notes.
A separate Analysis of the Urban Institute Found that if the public health emergency ends after the second quarter of 2022, there could be a 14.4 million drop in enrollment.

Entrants may lose coverage because they no longer meet income or other criteria or due to administrative constraints, such as failure to receive renewal papers or fill them out properly.

States will be largely responsible for reaching out to their residents to determine if they are eligible and, if not, for other policies, such as the Affordable Care Act, to assist them in exchange. ۔ They have 14 months to complete the eligibility test.

“How states implement the process of eliminating the need for continuous enrollment will really make a huge difference in how many people are able to maintain coverage,” Rodovitz said.

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