New York is set to re-commence its Medicaid eligibility checks on June 30th after a three-year pause in a process that will span over a year. This comes amidst data showing significant numbers of Americans are likely to lose their health coverage due to the termination of COVID-19 protections, initiated on April 1st. Since this action, more than 600,000 Medicaid users in 11 states have been dropped from their plans, primarily due to uncompleted paperwork, not income ineligibility.
The increase in Medicaid enrollment was a direct result of the pandemic, which led to a pause in eligibility checks as states received supplemental federal aid. As this aid phases out and Medicaid renewals restart, many stakeholders fear a sharp decline in insured rates.
In response, New York relies on the state’s unique Essential Plan and an aggressive outreach campaign to counteract this trend. The Essential Plan, a low-cost or free insurance plan for those earning above the Medicaid limit, is part of the state’s strategy to maintain health coverage for its residents. As of 2021, the Essential Plan is completely free of premiums and deductibles.
Currently, more than 9 million New Yorkers, approximately half of the state’s total population, are enrolled in Medicaid, Child Health Plus, and the Essential Plan, as per the state’s Department of Health data. The state also has a substantial database of income information for many Medicaid users, allowing for a smoother transition to other plans in the NY State of Health marketplace.
Additionally, the state has initiated an extensive public education campaign, requested flexibility from the federal government to renew coverage for certain groups automatically, and asked to raise the income eligibility cap for the Essential Plan.
While the Robert Wood Johnson Foundation projected a potential loss of one million New Yorkers from public insurance plans, the state Department of Health estimates a much lower figure of 100,000 people to become uninsured. The state aims to minimize this effect, ensuring the uninsured numbers do not dramatically increase.
