Over 500,000 people including many children were wrongly removed from Medicaid due to errors by 29 states and DC in reviewing eligibility. The states made mistakes by looking at eligibility at the family level instead of individually. The Centers for Medicare & Medicaid Services ordered the affected states to immediately reinstate anyone who lost Medicaid coverage due to the errors and pause further disenrollments until fixed or risk losing federal funding. The announcement comes as states did the first eligibility reviews in three years after a ban was lifted on removing ineligible people during the pandemic as a condition for extra federal Medicaid funding.
