An estimated 95,000 people in Washington D.C. are at risk of losing their health coverage in the next decade due to federal cuts to Medicaid. The District’s Department of Health Care Finance warns that many of these individuals may not be aware that they are at risk because they are enrolled in state-branded health programs that are funded by Medicaid. These programs, such as AmeriHealth Caritas in D.C., are often operated by private companies and may not be recognized as Medicaid plans by their recipients.
The federal cuts to Medicaid are part of a larger tax law signed by President Trump, which will result in over $1 trillion in cuts to federal health care programs over the next decade. Adults will be required to verify twice a year that they are working 80 hours a month, are in school, or are doing community service in order to maintain their coverage. However, many Medicaid recipients may not be aware of these new requirements because they do not realize that their health insurance is part of Medicaid.
This lack of awareness is due in part to the fact that many states have adopted unique branded names for their Medicaid programs, such as HUSKY Health in Connecticut and BadgerCare Plus in Wisconsin. While these names may help to reduce stigma and make the programs feel more like regular health insurance, they can also obscure the connection to federal policy and lead to confusion among recipients.
According to researchers, many people who are enrolled in Medicaid do not realize that they have Medicaid coverage. In fact, there is a significant disparity between the actual number of people enrolled in Medicaid and the number of people who report that they have Medicaid coverage. This “Medicaid Undercount” is estimated to be around 15.8 million people, who are not aware that they are enrolled in the program.
The use of managed care organizations, which have contracts with state governments to oversee care, can also contribute to confusion among Medicaid recipients. Many of these organizations are operated by private companies, and patients may interact more with these companies than with their state’s relevant agency. As a result, patients may not realize that their insurance is paid for with federal funds, and may not be aware of the changes to Medicaid that are upcoming.
The Republican-led revisions to Medicaid will require adults to verify their work status twice a year, which critics predict will target Americans who are eligible but will struggle with the paperwork needed to prove it. Researchers have found that similar work requirements imposed in Arkansas resulted in thousands losing their coverage, and have not had a significant effect on employment. Instead, the majority of those who lost coverage became uninsured, rather than moving on to other insurance.