CMS Urges States to Review Medicaid Auto-Renewal Process to Prevent Wrongful Terminations

CMS has addressed operational issues causing people to lose their Medicaid coverage during the federal unwinding period. CMS identified problems with how certain states auto-renew enrollees at the family level rather than the individual level, potentially leading to the improper disenrollment of eligible individuals when family members don't qualify for coverage. In response, CMS has mandated that affected states pause procedural terminations for those improperly disenrolled, reinstate their coverage, switch to individual-level auto-renewals, and implement strategies to mitigate further issues, such as extending Medicaid eligibility for affected families up to a year after their scheduled renewal period. CMS aims to rectify flaws in a renewal process that has resulted in millions of individuals losing Medicaid coverage because of the end of COVID-19 eligibility requirements.

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