California Health Coverage Crisis: Over 850,000 Lose Public Insurance

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In a significant healthcare development, California has seen a sharp decline in public health insurance coverage, with more than 850,000 residents losing their benefits following the end of COVID-19-related protections. Recent data from KFF reveals that Medicaid and Children’s Health Insurance Program (CHIP) enrollment in the state has decreased from 14.3 million to approximately 13.4 million during the 18 months leading to October 2024.

The state’s disenrollment rate stands at 6%, performing better than comparable states like Florida and Texas. California’s overall disenrollment rate of 19% remains below the national average of 31%, according to KFF research. However, the loss of coverage for nearly one million residents has sparked significant concern among healthcare advocates.

Investigations reveal that many lost coverage not due to ineligibility but because of confusion surrounding the post-COVID transition process and communication failures from state authorities. The situation stems from the expiration of the “continuous enrollment” provision, which was part of The Families First Coronavirus Response Act of 2020.

While California has implemented auto-renewal initiatives to minimize coverage losses, many residents still face challenges in maintaining their healthcare coverage. Despite these losses, current enrollment figures remain 16% higher than pre-pandemic levels, with 1.8 million more enrollees than in February 2020.

Ben Anderson from Families USA praised California’s efforts in coverage expansion but highlighted the stark contrast with states like Texas, Florida, and Georgia, where healthcare disruptions have been more severe.

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As the unwinding process concludes, state authorities continue to process remaining Medicaid eligibility determinations, while healthcare advocates monitor the situation’s impact on affected residents.

Source: Partch