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Update: Arkansas Medicaid closed 69K more cases in May

The state Department of Human Services continues to “unwind” Medicaid coverage for tens of thousands of people who enrolled in the government-sponsored health insurance plan during the covid-19 pandemic and who may no longer be eligible for coverage — or, who simply may not be aware they need to renew their paperwork.

DHS discontinued Medicaid coverage for roughly 69,000 people in May. Of those, about 43,000 were beneficiaries whose coverage had been extended due to the federal public health emergency, which the president ended recently. Nearly 73,000 Arkansans were kicked off the Medicaid rolls in April.

Most of the disenrollments appear to be related to paperwork: 32,000 people lost coverage in May because they “failed to return paperwork” and another 10,000 “failed to return requested information,” DHS said in a press release.

Medicaid serves about a million Arkansans, including children, elderly and disabled people and low-income adults who otherwise would be unable to access health insurance. It is typical for thousands of people to lose or gain coverage each month as their life circumstances change, but the number of closures the past two months has been far higher than normal. During an average month in the two years leading up to the pandemic, DHS disenrolled about 25,000 beneficiaries.

Special rules in place during the public health emergency prevented states from removing many people from their Medicaid rolls who would otherwise be ineligible. But in April, normal eligibility rules resumed and some states, including Arkansas, began purging beneficiaries as quickly as possible. Others have taken a more cautious approach to kicking people off.

Advocates are urging DHS to slow down. A rally on the steps of the Arkansas Capitol Thursday brought out about a dozen people experiencing issues with Medicaid or organizers working to highlight their stories. Arkansas Community Organizations, a progressive group, released a report on the barriers in the state’s Medicaid system and a slew of recommendations for how to improve coverage.

“This is life and death for a lot of Arkansans,” said Al Allen, an organizer for ACO. 

One beneficiary, Joyce Means, said she is stuck in limbo while she waits for her insurance to be ripped away. After receiving a confusing letter from DHS — which was sent to the wrong address — Means was told June 15 would be her last day of coverage. Means said the whole situation has been like a yo-yo: up and down, up and down. She has to stretch what money she does have between co-pays for medicine and healthy food, she said.

ACO organizer Neil Sealy said the letters DHS sends out are so difficult to understand that he had to read Means’ three or four times before it started to make sense. The complicated language DHS includes is another barrier for folks seeking health care, he said.

Michele Perrian of Pine Bluff said both she and her daughter have lost their health coverage. Perrian is a diabetic who is currently not taking medicine. Her daughter, Selena, was reported in the DHS system as “foreign” based only on her name, she said. Perrian said she had to confront DHS about the “glitch,” to which the agency staff could only offer apologies.

“You shouldn’t have to be half-dead to get your medicine,” Perrian said.

In its news release Thursday, DHS downplayed the impact of the recent disenrollments and said it had made “significant efforts” to reach beneficiaries as the federal public health emergency wound down. Though the majority of the recent case closures were the result of people not returning information, the agency said, that doesn’t necessarily mean all of those people haven’t received information.

“It is expected that beneficiaries who are no longer eligible for Medicaid will be disenrolled through this unwinding process. While some of these individuals will return their renewal packet and confirm that they no longer qualify, it is likely that many others simply will not return their packet because they are aware that their case will close given their change in circumstances,” DHS said. “So a closure because of a procedural reason does not mean that the packet was not received or that the beneficiary was unaware of this process.”

Here’s the full release from DHS:

(LITTLE ROCK, Ark.) — Today, the Arkansas Department of Human Services is reporting updated figures reflecting the second month of redeterminations as part of its required by law six-month effort to unwind the Medicaid rolls following President Biden’s ending of the Public Health Emergency (PHE). The continuous enrollment requirement during the PHE prevented DHS from removing most ineligible individuals from Medicaid, but normal eligibility rules resumed on April 1. DHS is now working to comply with these normal eligibility rules, which are set by Congress and the Centers for Medicare and Medicaid Services.

The latest figures are included in the report at the bottom of this release. There are several important considerations that provide context to this new data:

  • Wherever possible, eligible beneficiaries have their coverage renewed through an automated process that involves passively checking data against existing sources rather than actively requiring any new information be submitted. These renewals, called ex parte, are efficient and eliminate the need for beneficiaries to respond at all if they are confirmed to still be eligible. DHS is using these reviews at a higher level than ever before – in May, more than 29,000 beneficiaries had their cases renewed using this automated, efficient method.
  • For beneficiaries who receive renewal packets via mail, they are sent multiple notices before being disenrolled – first asking them to provide necessary information for their redetermination, and later advising them that their case is going to close if they are found to be ineligible or if they do not respond. In addition to mailings that go to all beneficiaries up for renewal, DHS attempts to reach beneficiaries by text, email, and/or phone when possible.
  • The disenrollments announced today follow more than a year of outreach leading up to the end of the PHE, during which DHS made calls to recipients, met with numerous providers, partners, and stakeholder groups, conducted awareness campaigns about the need to update addresses and watch for renewal letters, engaged paid advertising, and more.
  • Special emphasis has been made throughout this process on reaching families with children covered by Medicaid, including: providing lists of patients at risk of being disenrolled to pediatricians; sending materials to be distributed to families through school districts, school nurses, agency partners, and libraries; calling families covered by ARKids directly, and partnering with community-based organizations across the state, including many that directly serve children and families.

These significant efforts to reach Medicaid beneficiaries ahead of these disenrollments should not be discounted because of the number of beneficiaries whose coverage ended due to failing to return a renewal packet. It is expected that beneficiaries who are no longer eligible for Medicaid will be disenrolled through this unwinding process. While some of these individuals will return their renewal packet and confirm that they no longer qualify, it is likely that many others simply will not return their packet because they are aware that their case will close given their change in circumstances. So a closure because of a procedural reason does not mean that the packet was not received or that the beneficiary was unaware of this process. In fact, extensive efforts have been made – and are continuing to be made – to ensure that Medicaid recipients know what to expect. Among cases due in each month, procedural closures declined from 55,488 in April to 34,847 in May – a decline of more than 37 percent.

It is important to note that DHS is redetermining eligibility for large numbers of beneficiaries who would have been disenrolled during the PHE if not for the continuous coverage requirement that was in place. It is not surprising that this group of beneficiaries whose coverage was extended because of this special rule would be disenrolled at a high rate now that that requirement is no longer in effect.

There are also safeguards in place to address the possible situation in which a qualifying beneficiary who should retain coverage did not return information and was removed from the rolls. Depending on their type of coverage, beneficiaries generally have 30 or 90 days after closure to provide the necessary information and have their coverage reinstated without any gap. Even if a beneficiary learns that coverage has ended after this window, he or she can reapply and, if eligible, may have retroactive coverage going back to the date of re-application.

DHS is required under state law to redetermine beneficiaries’ eligibility over six months. We will continue in subsequent months to swiftly disenroll individuals who are no longer eligible, as this ensures that Medicaid resources go to beneficiaries who truly need them. We also will continue to provide information to those who no longer qualify for Medicaid on how they can maintain health care coverage, such as through an employer plan or the federal health insurance marketplace.

Beneficiaries who need assistance can submit questions through ar.gov/accessanywhere, call 855-372-1084, or visit ar.gov/renew for additional information.

 

 

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