CMS encourages group health plans to extend the special enrollment period during Medicaid unwinding

On July 20, 2023, the Centers for Medicare & Medicaid Services (CMS) issued a letter to employers, plan sponsors, and insurance issuers encouraging them to extend the special enrollment period for a loss of Medicaid or CHIP coverage under their group health plans beyond the required minimum 60-day special enrollment period for individuals losing coverage due to the expiration of the Medicaid continuous enrollment provision.

This Alert summarizes the Medicaid continuous enrollment provision, its recent expiration and the effects of such expiration on Medicaid recipients, CMS’s request to employers and other plan sponsors, and our recommendations going forward. It is applicable to all employers offering major medical coverage to employees.