The Families First Coronavirus Response Act (FFCRA), passed in response to the COVID-19 pandemic, offered states the option to expand Medicaid eligibility for coverage of COVID-19 testing and treatment.1 FFCRA also increased federal financial participation for state Medicaid programs by 6.2% – on the condition that states must maintain beneficiaries’ Medicaid enrollment status until the end of the month following the end of the COVID-19 public health emergency (PHE).2 Every state in America took advantage of this additional federal money for Medicaid. As a result of the FFCRA’s new eligibility requirements and enhanced funding, there has been a dramatic increase in Medicaid enrollment – more than 12 million individuals joined the Medicaid rolls between February 2020 and June 2021.3 This increase was driven by the twin economic forces of the COVID-19 pandemic and rapid increases in unemployment and loss of employer-based health insurance
While employment has not entirely recovered to pre-pandemic numbers, unemployment is declining. From a health care coverage perspective, this means that many newly employed workers are now eligible for employer-based health care coverage or have the means to purchase separate health insurance coverage through a state or national exchange.4 Under traditional eligibility rules, individuals with new employer-based health insurance would be removed from Medicaid enrollment as their other sources of coverage become effective (or as they cease...
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