Federal funding cuts result in dramatic Medicaid disenrollment in Michigan: Nearly 700,000 people lost health insurance

Lansing, Michigan – With nearly 700,000 people removed from the Medicaid and Children’s Health Insurance Program (CHIP) between March 2023 and October 2024, Michigan’s Medicaid and CHIP enrollment has dropped dramatically. This decline has followed the end of COVID-19 emergency policies that have previously preserved public insurance coverage.

Data from the health care research nonprofit KFF shows that throughout the 19-month period enrollment in Michigan’s Medicaid and CHIP programs dropped from about 3.1 million to slightly under 2.7 million. Michigan’s 23 percent decline is far more than the 16 percent national average loss. Though still below Montana’s top 57 percent, Michigan’s rate of disenrollment stands out at 38 percent, one of the highest among states like Texas and Florida where even more people are losing coverage.

This drop is mostly driven by the end of the protections started under the Families First Coronavirus Response Act of 2020. The Act had forced states to continue Medicaid and CHIP coverage for emergency enrollees, therefore stopping regular eligibility checks. States restarted eligibility verifications after these clauses expired in March 2023, which resulted in a notable volume of disenrollment both in Michigan and around the country. Estimated at 25.2 million nationwide, a sizable fraction of the disenrollment—about 25.2 million—were part of the Medicaid “unwinding” program.

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KFF added that procedural challenges rather than ineligibility caused many people to fail to renew their coverage. These included delays, difficult administrative procedures, and lack of understanding about the renewal requirements. Remarkably, a June report by the Center for Health & Research Transformation found that 82% of people disenrolled from Michigan were removed from the plan for procedural reasons including flaws with the state’s renewal system, missing documents, or unnoticed notifications.

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The unwinding of Medicaid’s continuous enrollment policy has left many former enrollees out of the loop regarding their eligibility status. According to a KFF poll conducted early last year, most Americans were not well informed about the expiration of the pandemic-era restrictions; 69 percent said they had heard little to nothing about the procedure.

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The focus now shifts to raising public awareness and streamlining administrative processes while the national unwinding process goes on to make sure eligible individuals may keep or renew their coverage without too much difficulties. The high frequency of procedural disenrollment indicates a vital need for more simplified procedures and better communication to assist individuals in need of these essential health services.