Congress Must Act to Shore Up the Medicaid System Ahead of an Expected COVID-19 Enrollment Surge

L.A. Care Leads the Call for Emergency Assistance

LOS ANGELES – L.A. Care Health Plan, the largest publicly operated health plan in the country, is leading an effort calling upon Congress to take four specific steps to strengthen the Medicaid system, which is braced to see a significant increase in enrollment due to COVID-19 job losses. Without these steps, Medicaid beneficiaries, among the most vulnerable in the country, will suffer the consequences.

The COVID-19 pandemic and the resulting economic downturn are further straining state budgets across the country, and without federal action, there could be major cuts to Medicaid benefits,” said John Baackes, L.A. Care. “Congress did shore up the system after the 2008 financial crisis, and it must do so again.”

L.A. Care submitted a letter, signed by 15 of the state’s local public health plans, to U.S. House of Representatives leadership and the California congressional delegation yesterday. California state legislators will receive a copy of the letter today. The letter outlines four critical measures that should be included in the next COVID-19 relief package:

  • Increase Federal Share of Medicaid Funding for Two Years – States will experience a decline in revenues, just as the need for services, like Medicaid, jumps. While this will be a temporary state of affairs, analysis reveals states will require as much as $192 billion in additional federal funding to sustain Medicaid programs over a two-year period.
  • Suspend the Proposed Medicaid Fiscal Accountability Rule (MFAR) – Released late last year, the proposal will reduce the amount of funding provided to states as part of their Medicaid matching funds.  This is no time to reduce funding for critical safety net programs.
  • Extend Presumptive Eligibility for Medicaid – Counties across the country are going to be under considerable pressure to process all applications in a timely manner during the surge in Medicaid enrollment. Presumptive eligibility provides immediate short-term health care coverage for those who appear to be eligible for Medicaid after suffering a job loss due to COVID-19. Without it, they could wait weeks or months to complete the enrollment process, forgoing needed care.
  • Cease Implementation of the Public Charge Rule – The rule, which now lists Medicaid and other necessary services for consideration when applying for a green card, has already created a chilling effect among those in the country legally. A pandemic is no time to have people avoid medical care in order to protect their future immigration status.

L.A. Care applauds the efforts taken so far to help workers, small businesses, hospitals and clinics during this crisis, but Congress must include significant support for states and the Medicaid system in the next relief package. Instituting the four measures outlined above will help ensure better health outcomes for communities all across this country.