A requirement that states keep people on Medicaid is coming to an end. As many as 325,000 Coloradans could lose their Medicaid coverage over the coming year. Here’s what employers need to know and what they can do.
In January 2020, the U.S. Department of Health and Human Services (HHS) declared a public health emergency (PHE) in response to the outbreak of COVID-19.
Congress passed the Families First Coronavirus Response Act (FFCRA) that ensured anyone enrolled in Health First Colorado (Colorado’s Medicaid program) was guaranteed to keep their health coverage during the PHE. This is known as the “continuous coverage requirement” and also applies to kids and pregnant people covered by Child Health Plan Plus (CHP+). The 2023 Consolidated Appropriations Act, signed in December 2022, went a step further and separated the continuous coverage requirement from the FFCRA and ended that continuous coverage on March 31, 2023.
Medicaid Renewal Process Begins Again
The federal government directed states to begin regular renewal processes at the end of the continuous coverage requirement. During this unwinding process, each state must follow a set of rules laid out by the Centers for Medicare and Medicaid services (CMS).
In Colorado, the Department of Health Care Policy & Financing (HCPF) will take 12 months (14 months, including noticing) to complete renewals for each of the approximately 1.7 million people currently enrolled in Health First Colorado or CHP+. Not all members will be renewed at the same time. Each member’s renewal month will align with their already established annual renewal month.
If a current member’s circumstances have changed since enrollment — such as starting a new job that might put them over the income level for Medicaid — they should begin researching other insurance coverage options to avoid becoming uninsured and the devastating consequences that can follow. HCPF estimates that more than 325,000 participants will no longer be eligible for Health First Colorado or CHP+ and will need to find another form of health care coverage. Employers could have employees who will be affected by the change.
How Colorado Employers Can Help Employees Navigate the Change
Colorado employers can help by proactively communicating health coverage options with their employees. HCPF is reaching out to members directly and launching a public information campaign. Employees who may lose coverage through Health First Colorado will likely have questions for their employers. Here are some resources you can provide as an employer:
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If someone no longer qualifies for Health First Colorado or CHP+ coverage, they may qualify for reduced-cost health insurance coverage through Connect for Health Colorado. Losing Health First Colorado or CHP+ coverage is a “qualifying event,” which means they can apply for health insurance through Connect for Health Colorado during a special enrollment period.
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Remind your employees about health coverage options you provide and how to apply. Check with your plan provider or your broker to find out if losing Medicaid coverage would be a qualifying event to enroll in employer-sponsored coverage outside the normal enrollment period.
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Refer affected employees to the Health First Colorado website to learn more about the renewal process and their other coverage options.
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Visit HCPF’s Keep Coloradans Covered webpage for more information and resources on how to help employees who need to find other health care coverage. There are downloadable fliers you can post in public areas as well as social media and newsletter content you can share with your employees
Healthy employees benefit everyone: employers, customers, and each other. According to the Kaiser Family Foundation, “studies repeatedly demonstrate that uninsured people are less likely than those with insurance to receive preventive care and services…. The uninsured often face unaffordable medical bills when they do seek care.” In this article, Teri Brown of Employers Council addresses prioritizing “emotional, physical, mental, and financial health” to retain and engage employees. Additionally, the Assistant Secretary for Planning and Evaluation (ASPE) Office of Health Policy recently issued a report that emphasizes the need for employers to help identify solutions through education and outreach to bridge the health care gap that will result from the unwinding process.
Every state has a unique unwinding program. Below are links to resources for Arizona and Utah. Additionally, you can contact each state’s Health Services department for more information.
New Mexico and Wyoming do not currently have resources.
The end of the PHE will bring many changes, and employers will have an important role in helping their staff navigate it all. For more information on unwinding or tools to support your staff members, please contact HCPF. For HR and employment questions, Employers Council is also here to help.
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