California Cuts 850,000 from Medicaid—Here’s Why and What It Means

California has dropped more than 850,000 people from its Medicaid program, Medi-Cal, following the expiration of pandemic-era continuous enrollment policies. This mass disenrollment is part of a nationwide “unwinding” process that reinstates regular eligibility checks for Medicaid and Children’s Health Insurance Program (CHIP) recipients. While California’s 6% reduction is moderate compared to some states, it still leaves nearly a million people facing uncertainty about their healthcare coverage.

What Led to the Disenrollments?

During the COVID-19 public health emergency, states were prohibited from removing individuals from Medicaid, ensuring continuous coverage for millions of Americans. However, as part of the federal Consolidated Appropriations Act of 2023, this provision ended, allowing states to resume annual eligibility redeterminations. As a result, many individuals who may still qualify for Medicaid lost their coverage due to administrative issues rather than actual ineligibility.

According to the California Department of Health Care Services (DHCS) (dhcs.ca.gov), the unwinding process led to a decline in Medi-Cal enrollment from 14.3 million to approximately 13.4 million between March 2023 and October 2024. The state aimed to conduct these redeterminations carefully, yet many recipients faced difficulties navigating the renewal process, leading to procedural disenrollments.

Administrative Challenges and Barriers

A significant number of disenrollments occurred due to paperwork issues rather than a determination of ineligibility. Many beneficiaries did not receive renewal notices, submitted incomplete forms, or missed deadlines due to outdated contact information. These procedural disenrollments have disproportionately affected vulnerable populations, including low-income families, seniors, and individuals with disabilities.

To mitigate this, California introduced auto-renewal initiatives, which allow eligible individuals to maintain coverage without reapplying manually. The state also launched outreach programs to notify enrollees through text messages, emails, and phone calls. Despite these efforts, a substantial number of people still lost coverage.

How California Compares to Other States?

Although California has seen a significant drop in Medicaid enrollment, it has fared better than states like Texas and Florida, where disenrollment rates have been higher. According to KFF (Kaiser Family Foundation) (kff.org), states that did not take additional steps to streamline the renewal process saw much steeper declines in Medicaid coverage.

The federal government has urged states to adopt policies that minimize procedural disenrollments, such as extending response deadlines and utilizing existing state databases to verify eligibility. California’s auto-renewal efforts have helped slow the decline, but gaps in communication and accessibility remain problematic.

What to Do If You Lost Coverage?

For those who have lost Medi-Cal coverage, there are steps to take to regain insurance:

1. Check Your Eligibility: You can verify if you still qualify for Medi-Cal by visiting Covered California (coveredca.com) or calling your local county Medi-Cal office.
2. Reapply for Medicaid: If you were dropped due to a paperwork issue, you may still be able to re-enroll through the California DHCS website.
3. Consider Marketplace Plans: Those no longer eligible for Medi-Cal may qualify for subsidized health insurance through Covered California, the state’s health insurance marketplace.
4. Seek Assistance: Nonprofits and healthcare advocates, such as Health Consumer Alliance (healthconsumer.org), can provide free guidance on reinstating coverage.

The Bigger Picture

Despite the recent disenrollments, Medicaid enrollment in California remains higher than pre-pandemic levels. In February 2020, the program covered 11.6 million people, meaning enrollment today is still about 1.8 million higher. This indicates that while the unwinding process has caused disruptions, Medicaid continues to serve a crucial role in providing healthcare to low-income Californians.

However, policymakers and healthcare advocates warn that without further adjustments, many individuals could fall through the cracks, leading to increased emergency room visits and untreated medical conditions. Moving forward, California officials are considering additional safeguards, such as extended grace periods and expanded outreach efforts, to prevent unnecessary losses of coverage.

Final Thoughts

The end of continuous Medicaid enrollment has had a significant impact across the United States, with California seeing over 850,000 people dropped from its Medi-Cal program. While efforts have been made to minimize the damage, many Californians are still struggling to re-enroll or find alternative healthcare options.

For those affected, it’s crucial to act quickly by checking eligibility and reapplying if necessary. State officials, healthcare advocates, and nonprofits continue working to address procedural flaws and ensure that eligible individuals do not lose access to vital health services. If you or someone you know has lost Medicaid coverage, resources are available to help navigate the process and secure new insurance options.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.