CMS releases rule as states resume Medicaid eligibility
During the pandemic, the federal government prohibited states from ending Medicaid participants’ coverage. This process ended in April 2023 when states were required to resume evaluating beneficiaries’ eligibility. Since then, over 1.3 million people have been disenrolled from Medicaid. In some states, more than 80% of disenrollments were due to “procedural reasons,” where participants were disenrolled, but may still be eligible.
Now, as states restore Medicaid eligibility, the Centers for Medicare & Medicaid Services (CMS) has published an interim final rule with consequences for states that fail to comply with new reporting requirements. States may be required to submit a corrective action plan, stop “procedural” disenrollments, and pay penalties. For failing to meet reporting requirements, CMS may also reduce the percentage of money it gives to the state to assist with Medicaid expenses. The interim final rule was effective on Dec. 6, 2023. CMS is receiving comments through February 2.
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