25 million people lost Medicaid after the COVID-19 pandemic — and state policies shaped who stayed covered
Quick Insights
The Bottom Line
25 million Americans lost Medicaid coverage after the COVID-19 pandemic due to state policy changes.
How This Affects You
You could lose Medicaid coverage if your state implements stricter eligibility checks or new work rules starting January 1, 2027.
AI Summary
More than 25 million people were disenrolled from Medicaid between April 2023 and mid-2025 after states resumed eligibility checks that had been paused during the COVID-19 pandemic. This process, known as the "Great Unwinding," followed a period where Medicaid enrollment reached an all-time high of over 94 million people by early 2023 due to continuous coverage policies. The disenrollments were not evenly distributed, reflecting state-by-state differences in how eligibility checks were conducted and the administrative burden placed on individuals. A majority, 69%, of those who lost coverage did so due to administrative reasons like procedural disenrollments rather than being deemed ineligible. These state policy differences are likely to matter again as states enforce new Medicaid work rules and more frequent eligibility checks under the 2025 budget law starting January 1, 2027.
What's Being Done
States are enforcing new Medicaid work rules and more frequent eligibility checks under the 2025 budget law starting January 1, 2027.
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