Half a Million Improperly Dropped from Medicaid


Federal health officials urge states to correct the flawed system after discovering that at least 500,000 families and children were wrongfully removed from Medicaid coverage.

Federal health authorities revealed last week that 30 states, including New Jersey, have erroneously purged people from their Medicaid lists, impacting at least 500,000 children and families across the nation. The Centers for Medicare and Medicaid Services (CMS) has demanded states rectify the issue immediately


Centers for Medicare and Medicaid Services (CMS), state departments responsible for Medicaid, Medicaid beneficiaries, and Health and Human Services (HHS) Secretary Xavier Becerra.


An update reveals CMS’s corrective action, aimed at resolving the wrongful termination of nearly 500,000 Medicaid and CHIP beneficiaries.


CMS issued a call to action to states on August 30, following up on last week's disclosure.


This issue has affected 30 states, including New Jersey - notices have been sent to all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Island.


Systematic errors led to improper disenrollment, affecting the most vulnerable families and individuals.


States have been instructed to rectify errors and reinstate benefits for those wrongfully terminated, aided by federal oversight and technical assistance.

On August 30, CMS issued a call to action, alerting states about system issues causing improper disenrollments. The federal rules require states to use existing reliable data, like wage data, to determine continued eligibility for Medicaid and CHIP. The move aims to auto-renew benefits, ensuring that eligible individuals don't lose coverage due to bureaucratic red tape.

CMS has sent its call to action to all states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. According to a CMS summary, 30 states reported having these system issues, and all were instructed to pause procedural disenrollments until further review - this includes New Jersey.

The Kaiser Family Foundation (KFF) revealed that at least 7.1 million Medicaid enrollees had been disenrolled as of September 20. Troubling data from the Center on Budget and Policy Priorities shows that 29% of all enrollees due for renewal had their eligibility terminated for procedural reasons. The overall loss of Medicaid coverage has happened more swiftly than anyone anticipated, as noted by Karen Shields, Chief Client Engagement Officer at Gainwell Technologies.

To combat avoidable coverage losses, HHS Secretary Xavier Becerra has urged states to adopt new strategies and flexibilities. CMS has also launched national marketing campaigns and Special Enrollment Periods to ease transitions to other health coverage options.

"Thanks to swift action by HHS, nearly half a million individuals, including children, will have their coverage reinstated, and many more will be protected going forward," said HHS Secretary Xavier Becerra.

CMS Administrator Chiquita Brooks-LaSure added, "Addressing this issue with auto-renewals is a critical step to help eligible people keep their Medicaid and CHIP coverage during the renewals process, especially children."

For Morris County and Morristown residents who rely on Medicaid and CHIP, these developments are a ray of hope. As federal and state authorities work to rectify errors, residents are urged to stay updated on any communications from state agencies and to ensure their contact information is current.

As federal and state entities mobilize to correct the massive, erroneous Medicaid disenrollments, the people of Morris County can anticipate the reinstatement of wrongfully terminated benefits. With health coverage being more crucial than ever, vigilance in keeping personal information up to date could make a difference in maintaining one's benefits.

*This article has been updated to incorporate the latest developments and official statements. It aims to provide the most current and locally relevant information for Morris County residents. Further updates will be necessary as the situation evolves.

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