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Medicaid Benefits Cannot Be Terminated Until at Least 2022 as Public Health Emergency Will Remain in Place Through 2021

Medicaid benefits cannot be terminated until 2022.  As we previously reported, Indiana cannot terminate individuals from the Medicaid program until the end of the month in which the Secretary of the Department of Health and Human Services declares that the COVID-19 public health emergency no longer exists.  This also includes the State’s ability to reduce benefits for any beneficiary enrolled in Medicaid on or after March 18, 2020.  The Biden Administration recently announced plans to keep the COVID-19 public health emergency in place through at least 2021.  This means that Medicaid benefits cannot be terminated and Medicaid eligibility rules cannot be made more restricted until at least 2022.  The Biden administration also announced that it would give 60 days notice to states before declaring the emergency to be at an end.

On the other hand, the Indiana Family and Social Services Administration did announce its intent to again resume standard rules for calculating patient and waiver liabilities beginning March 1, 2021.  According to a recent Indiana Health Cover Programs bulletin, no retroactive changes will be made.  Although the Bulletin indicates that benefits can be suspended for up to two months after the national emergency ends in order to spenddown excess resources, we recommend that recipients plan well ahead of that time so that benefits will not be suspended or terminated when the national emergency ends.

If you need help planning for spending or sheltering excess resources, the Stinson Law Firm can assist you.  Contact us today at 317-622-8181 or www.stinsonlawfirm.com.

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