Medicaid Expansions

With changes to Medicaid eligibility going into effect in January 2014, CMS has issued a letter detailing five targeted enrollment strategies that can help states with the transition to their new eligibility and enrollment systems. 

Medicaid provides critical health insurance coverage to tens of millions of children, adults, elderly and people with disabilities every year. Under the Affordable Care Act (ACA), millions more will gain Medicaid coverage, beginning in 2014. However, Medicaid can be like a leaky sieve: every year millions of people enroll, only to subsequently lose their coverage, even though they are still eligible, due to cumbersome paperwork requirements and small, often short-term, increases in income. The problem of beneficiaries entering and exiting Medicaid is sometimes called “churning.” This report examines the impact of churning in every state.

States expanding Medicaid eligibility under the ACA can substantially expedite Medicaid enrollment and retention for SNAP participants, 97 percent of whom will qualify for Medicaid, according to this study. Even in states where SNAP provides broad-based categorical eligibility that extends SNAP’s gross income limits to at least 185 percent of the federal poverty level, 94 percent of SNAP recipients will qualify for Medicaid. Data showing SNAP receipt can thus verify Medicaid applicants’ financial eligibility, allow administrative renewal for Medicaid beneficiaries, and facilitate Medicaid enrollment for numerous eligible consumers when expanded coverage begins in early 2014.

This brief examines the cost and use of health care among low-income nonelderly adults who are covered by Medicaid relative to their expected service use and costs if they instead had employer-sponsored insurance coverage or were uninsured. The analysis controls for a wide array of factors that also influence utilization and spending in an effort to isolate the specific effects of Medicaid coverage. Consistent with previous research, the analysis underscores how Medicaid facilitates access to care for program beneficiaries.