Yes, you can be dropped from Medicaid if your income exceeds limits, you fail to report changes in household size/status, you move out of state, or you fail to respond to renewal notices. Following the end of pandemic-era, continuous enrollment protections, states are actively reviewing eligibility and removing those who no longer qualify.
If you are no longer eligible for Medicaid, you can apply for private health insurance through your employer if that is offered to you. Generally, to sign up for job-based coverage outside of the normal annual open enrollment, you must apply within 60 days of losing your Medicaid.
Medicaid cancellation happens due to income or asset changes exceeding limits, failing to complete renewals or submit required documents (like proof of income/residency), changes in household size or residency, aging out of coverage (e.g., turning 19), or administrative errors like outdated contact info, with many recent losses stemming from procedural issues during post-pandemic "unwinding".
Annual Renewals: Medicaid beneficiaries must renew their eligibility every year. This process often includes submitting updated financial information. Medicaid will review your bank statements to ensure you meet the financial requirements. Periodic Reviews: Medicaid can conduct periodic reviews at any time.
Coverage generally stops at the end of the month in which a person no longer meets the requirements for eligibility.
You can apply and enroll in a Marketplace plan as early as 60 days before your Medicaid or CHIP coverage ends to avoid a gap in coverage.
Primary reasons include incomplete applications, failure to respond swiftly to Medicaid correspondence, being over income limits, and more. Learn more in this blog by HKH Elder Law -- receiving professional guidance can significantly increase your chances of approval.
The CMPL authorizes the Department and the OIG to impose CMPs, assessments and program exclusions against individuals and entities who submit false or fraudulent, or otherwise improper claims for Medicare or Medicaid payment.
One provision in the law will take Medicaid coverage away from people, mostly seniors and those with disabilities, who also have Medicare due to provisions that make it harder to get and stay enrolled in Medicaid.
California
Another significant reason for Medicaid cancellation is not submitting paperwork on time. States require Medicaid recipients to renew their coverage periodically by submitting updated documents, including: Proof of income.
Hospitals are legally required to treat and stabilize all patients, even if they can't pay. Medicaid provides hospitals with funding to help cover these costs. Without it, hospitals still have to treat people, but with less money.
Medicaid enrollees can be disenrolled for several reasons, including because they are no longer eligible or because they did not complete the renewal process due to paperwork issues, a late submission or other reasons.
The Medicaid agency in your state should let you know if your coverage has been terminated, but you may also be able to find out by directly reaching out to the agency or determining if a change in your income or circumstances has made you ineligible.
Follows are the most common reasons for denial.
The Federal Poverty Level (FPL) is an income threshold set annually by the U.S. Department of Health and Human Services (HHS) to determine eligibility for various federal and state programs, with 2025 guidelines showing $15,650 for a single person and increasing for larger households, like $21,150 for a two-person family, with higher levels for Alaska and Hawaii. These guidelines, updated for inflation from a 1960s food-based calculation, serve as a baseline for many benefits, though specific program rules for eligibility can vary.