Hundreds of thousands of Georgians who received health insurance through Medicaid during the pandemic could begin losing coverage next spring under the federal spending bill unveiled this week.
The congressional proposal would end the pandemic-era rule requiring states to continue covering Medicaid enrollees even if they are no longer eligible for a state’s eligibility rules. The requirement was incorporated into federal coronavirus legislation passed in March 2020.
Under the terms of the $1.7 trillion spending package, millions of people could lose coverage nationwide — including about 545,000 Georgians, according to a state estimate — in a process that could begin as soon as April first if Congress passes federal spending bill.
A group of Republican governors, including Georgia Govt. Brian Kempsent the president Joe Biden a letter this week asking him not to renew the declaration of a public health emergency beyond April so states can start cutting their bloated Medicaid rolls, citing costs.
The governors’ appeal came even as states continue to battle a “triple epidemic” of rising cases of COVID-19, influenza and RSV that threaten to strain their hospitals this winter.
“While the virus will be with us for some time, the emergency phase of the pandemic is behind us,” the 25 governors wrote in a statement. December 19 letter to Biden. “We’ve come so far since the pandemic began – we now have the tools and information to help protect our communities from COVID-19.”
The declaration of emergency is about to expire January 15, but the Biden administration is expected to extend it again, continuing it at least until April. But the proposed spending bill would detach the so-called Medicaid unwind process from the federal emergency declaration.
In GeorgiaMedicaid enrollment has risen to about 2.6 million people, from about 1.8 million before the pandemic.
This increase was accompanied by additional federal funding that helped state budget writers weather the public health crisis, providing Georgia on $2.2 billion in tax breaks – more than double the amount the state has spent on additional enrollees, according to an analysis of the Kaiser Family Foundation.
The State closed the last fiscal year with a $6.6 billion surplus and revenues for the first five months of the new fiscal year increased by 6.2% – or $741.7 million – above this time last year.
But even with the federal boost, G.O.P. leaders say the rule has cost states “hundreds of millions of dollars,” the letter said.
There won’t be a clear picture of the cost until states are able to go through the process of identifying those who are no longer eligible for coverage because, for example, they’ve aged out of program or their income level has changed, Kemp’s spokesperson said, André Isenhour.
In total, however, the state spent about $37.5 billion on benefits for Medicaid enrollees since the pandemic began, Isenhour said.
