Data from the federal government shows that more than 4 million individuals enrolled in the Medicaid program this spring due to the pandemic driven economic downturn. The 5.7% spike came after the swell in unemployment and the loss of corresponding employer-sponsored healthcare. In response to the Coronavirus and the economic decline, the CARES Act was passed in March. The bill restricted states from disenrolling beneficiaries and scaling back program eligibility during the course of the public health crisis.
Prior to the Coronavirus pandemic, there had been a decline in Medicaid enrollment since 2017. This year's rise in enrollment amounted to over 2.4 million adults and 1.4 million children. By June, CMS determined that 68 million people were enrolled in the Medicaid program, and 6.7 million children enrolled in CHIP.
Even with the considerable flux, healthcare analysts anticipated an even higher Medicaid enrollment rate. However, their predictions were not met since some employees were only temporarily laid off and retained their employer-sponsored coverage. Furthermore, Medicaid enrollment normally trails behind unemployment in an economic decline.
Unfortunately, these temporary furloughs are becoming permanent in many cases. The CBO predicts that in 2021 Medicaid and CHIP enrollment will grow by an additional 9 million people. Their estimate takes into account the stipulations of the CARES Act and the pandemic's economic impact.
Earlier this year, the federal healthcare exchange also experienced additional activity. Compared to 2019, enrollment rose by 46% in the first two quarters of 2020. Almost half a million people who lost health insurance turned to the exchange for coverage. State-run exchanges with special enrollment periods also had higher utilization.
