The FY 2023 Government spending bill, called the Consolidated Appropriations Act, 2023 and known as the omnibus spending bill, was passed on December 23, 2022, and requires states to begin processing Medicaid redeterminations no later than April 1, 2023. The bill separates the Medicaid redeterminations process, known as “unwinding”, from the public health emergency (PHE) that was declared in 2020 in response to the COVID-19 pandemic. States were prohibited from disenrolling any Medicaid recipient during the PHE in order to maintain continuous coverage during the emergency. In addition to separating the continuous coverage from the PHE, the new law provides a phase-out of the enhanced reimbursement from Medicaid. Instead of immediately discontinuing both the continuous coverage policy and the added 6.2% reimbursements (enhanced FMAP), the increase will be gradually reduced over the remainder of 2023.
Factsheet: 2023 FY Spending Bill and the Medicaid Unwinding: Implications for the HCH Community
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Medicaid & Health Care Financing, Policy and Advocacy, Policy Issues