Updated: Thursday, March 28 at 11:37 a.m. ET
A temporary special enrollment period through HealthCare.gov will be available for people who are no longer eligible for Medicaid or CHIP coverage transition to the marketplace.
Running from July 31 to Nov. 30, 2024, the extension should allow individuals to state enrolled in health care coverage. CMS said state-based marketplaces can adopt similar extensions, according to a news release.
“We encourage states to use all the strategies and resources we have provided them to carry out renewals of coverage," said HHS Secretary Xavier Becerra in a statement. "We will continue to monitor the renewal process and make sure federal requirements are being followed.”
The Centers for Medicare & Medicaid Services (CMS) released a final rule Wednesday to help individuals obtain and retain Children's Health Insurance Program (CHIP) coverage.
Eligible children and adults will gain access to increased protections in Medicaid and CHIP programs that were previously made possible by the Affordable Care Act.
Among the provisions, waiting periods and lifetime limits on CHIP coverage for children will be eliminated. Children can also not be removed from coverage if a family is unable to afford premiums. And if the income levels for a family rises, children will be transferred from Medicaid to CHIP coverage.
A report from the Department of Health and Human Services (HHS) found that average monthly eligibility for Medicaid and CHIP will increase by 3.5% under a 12-month continuous eligibility requirement, and more than 1 million children will gain at least one month of eligibility. Of those 1 million children, most will be older, White or have higher household incomes.
States will also no longer be allowed to conduct renewals sooner than every 12 months and can not require in-person interviews for adults or people with disabilities. Individuals will receive guaranteed time to provide and return documentation as a result of the rule.
These federal protections are important, because Medicaid and CHIP requirements vary by state. This final rule was first proposed in September 2022, with the ultimate goal of simplifying enrollment and renewal requirements. It will take effect in 60 days.
“We know that removing red tape and administrative barriers helps people get and keep their health coverage—and gives security and peace of mind to American families," said HHS Secretary Xavier Becerra in a statement. "This rule extends insurance reforms included in the ACA so that millions of children will not face barriers to enrollment or be at risk of losing the coverage they rely on to stay healthy. It removes outdated barriers to health insurance and helps fulfill the promise of the ACA, especially for those in vulnerable and underserved communities."
CMS previewed future Medicaid and CHIP regulations to drop. The agency said more updates to improving managed care and access to services will come later this year.