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You may have heard on the news or social media outlets that Medicaid has begun an "unwinding process." This can be a confusing time for most - so lets make it easy!
What is "unwinding?"
The Covid-19 pandemic was a crazy time for all of us. During such uncertain crisis, every state across the country declared a "Public Health Emergency." This meant that many American's who were not previously eligible for state medical assistance, or Medicaid, became newly eligible. And those who were already receiving those benefits were not required to do bi-annual or annual recertification processes - which was a great relief to millions of American's who faced major changes in their income.
With the Public Health Emergency officially declared over on May 11th, 2023, each state began their "unwinding" process. This means they would start re-determining eligibility for those receiving state assisted Medicaid. Recertification generally requires verification of income, assets, disability status, etc. If you have been receiving Medicaid, your state will send notifications in the mail or through their online portals stating what is needed and the deadline to submit such documentation.
With so many changes over the past few years, many individuals and families are still eligible. But for those who are no longer eligible...
What happens next?
First off - don't worry and don't stress! Losing your Medicaid can be a scary thing. I, myself, am even impacted by this unwinding process. Luckily there are quite a few ways that you can still obtain affordable coverage.
Option #1 - The Affordable Care Act
Loss of qualified coverage, like Medicaid, triggers what's called a "Special Enrollment Period" for the Affordable Care Act. That means you have 60 days from the date of your loss of coverage to obtain a new plan through the ACA. There are plenty of opinions on "Obamacare" but if you are in a lower income bracket, or have major pre-existing conditions, this will be the absolute best way for you to go. For example, individuals making $19,000 - $30,000 annually qualify for $0 - $50 plans in most states. These plans are federally regulated and therefore, the government pays for some or all of your health insurance costs based on your income and household size. If you have the option of affordable coverage (9.17% or less of gross household income) through an employer or a spouse's employer, you will not be eligible for cost savings, though.
Option #2 - Employer sponsored coverage
If you or your spouses employer offers health insurance benefits, the loss of Medicaid will provide the same Special Enrollment Period that it does for the Affordable Care Act. Employer plans tend to be with major companies like Blue Cross, Aetna, and Cigna. They also tend to have reasonable deductibles and maximum out of pocket amounts.
Option #3 - Short Term Medical plans
Maybe you aren't eligible for employer benefits just yet. Maybe you work part time. Maybe you're a small business owner and do not want the government involved in your health insurance. Whatever the case, Short Term Medical plans are popular for a reason. They can be more affordable than the ACA and offer a variety of coverage options. These plans aren't a good fit for everyone though, as they do have medical underwriting. That means that if you've had any major conditions in the past 5 years, like cancer, stroke, heart attack, diabetes, etc you will be ineligible for these types of plans. They also have limitations on pre-existing conditions and generally do not cover things like maternity care or drug and alcohol rehabilitation.
If you have any questions or would like to review which options will work best for you, I'm just a phone call/text/email away! As a broker, I have very broad knowledge and experience in the industry. There's a solution for just about everything!
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