New premiums cause healthy Michigan Medicaid members to drop out, study shows

The sudden imposition of premiums is prompting Medicaid members in Michigan to disenroll in coverage, according to an article published by the Ann Arbor-based University of Michigan May 10.

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A study of Medicaid expansion participants in the state from March 2014 to September 2016  showed a 2.3 percentage point increase in disenrollment at the federal poverty level. Given a baseline disenrollment of 20 percent over six months, the study found 12 percent more participants disenrolled after they began owing monthly premiums, the article said. 

The study also showed disenrollment rose by nearly 1 percent for every dollar charged monthly. Those who left the plan were typically healthy and had not received care for a chronic illness. 

Over 900,000 Michigan residents are enrolled in the state’s Medicaid program, according to the article.

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