More Families Seeking Health Coverage Than Ever Before: Medicaid Enrollment up by 3.3 Million (60 Percent Children)

In this often-called "unprecedented" economic recession, it is easy to become jaded by the dire statistics thrown our way. This week however, the Kaiser Commission on Medicaid and the Uninsured (KCMU), gave us a positive number to consider:  over the last year, 3.3 million more uninsured people (2 million who were children) were able to rely on Medicaid for health coverage. According to KCMU, this was the largest one-year increase in terms of numbers of people in the history of the program.  When you think about it, it should come as no surprise.  Since most people receive their health coverage through their jobs, the current high unemployment rate equates to millions of families also losing health coverage. Fortunately for these families, they were eligible for Medicaid (or CHIP) and did not have to forgo doctor's visits for themselves or their children. 

But unfortunately, at the same time that many more families are seeking a safety valve to help them through these insecure times, states are facing their own economic uncertainties. Decreased revenues coupled with increased demand for services have put a strain on states, with a number considering Medicaid cuts just when families need it the most. A number of states have been able to hold the line due to a temporary increase in their Medicaid matching rate that was included in the stimulus bill. Since a condition of receiving the enhanced match was that states not cut Medicaid eligibility (referred to as a maintenance-of-effort requirement), the funding was critical in ensuring that the growing ranks of families needing Medicaid could obtain that care.

The KCMU report shows however that with the FMAP increase ending December 31, 2010, states are again looking at dramatic enrollment increases that they cannot sustain. As I previously described on this blog, the President's proposed budget includes a six-month expansion of the FMAP increase. There are also legislative proposals to do the same, including the House's inclusion of an extension in its "job's bill".  Families USA released a report this week that explains the positive impact the FMAP increase and the maintenance-of-effort requirement has had for families, and what they could lose if it is not extended.

Let's think about that number again: Medicaid enrollment increased by over 3 million individuals. That is a lot of families who are struggling, and it is wonderful that this help is available to them (and hopefully will continue to be). But lets also not forget the millions more who became uninsured but were not eligible for Medicaid or CHIP. We will report next week on the President's health care summit for solutions put forth to address the growing ranks of the uninsured.