4 ways Americans will get hammered with benefit cuts once COVID-19 is no longer deemed an official public health emergency
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- The federal government renewed a public health emergency declaration earlier this month.
- It paves the way for extra federal assistance on food stamps, COVID-19 vaccines, and testing.
- But unwinding it could spell benefit cuts for many people — here's how.
Millions of Americans could soon be dealing with cuts to federal benefits in just a few months.
The Department of Health and Human Services extended the COVID-19 public health emergency declaration earlier this month. The 90-day designation was renewed on April 12, setting up a mid-July expiration unless the Biden administration decides to continue it.
That emergency declaration opens the door to increased federal funding for a variety of programs, ranging from improved access to Medicaid to more generous food benefits. But if the declaration lapses, that extra funding could vanish.
"Prematurely declaring an end to the public health emergency hampers the response to COVID-19," Larry Levitt, a health policy expert at the Kaiser Family Foundation, wrote on Twitter.
The Biden administration has assured states they will receive 60 days of advance notice before the public health emergency ends. Yet the pandemic is ongoing and while new recorded cases remain far below their winter peak, they're ticking upward once again after an early springtime lull.
Here are four ways that Americans could get hammered with abrupt ends to more generous health and nutritional benefits.
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The declaration paves the way for the federal government to provide more assistance through the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
Eligible families get at least an extra $95 per month in federal aid as a result of the public health emergency, per the left-leaning Center on Budget and Policy Priorities. Once that ends, most SNAP recipients are poised to lose $82 per month in benefits, according to the Food Research and Action Center.
Not everyone is accessing this aid. Some GOP-led states like Florida and Missouri pulled the plug on their beefed-up nutritional assistance programs last year. At least five more that are also GOP-controlled intend to cut the aid next month since they ended their state public health emergency declarations, The New Republic reported.
The Department of Agriculture will give states one month to transition beneficiaries off the enhanced assistance once the federal government ends the designation.
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Millions of low-income Americans will also lose access to free health insurance through Medicaid since the federal government will no longer be picking up the tab for states.
The federal government and states share responsibility in financing Medicaid. An earlier pandemic relief law in March 2020 expanded the federal government's share of payments for the duration of the public health emergency.
Estimates on the extent of coverage losses once the emergency ends vary. But the Urban Institute projected in late 2021 up to 15 million Americans will lose their Medicaid health insurance over 14 months.
A recent analysis from the left-leaning Center on American Progress warned of financial strains on hospitals dealing with a spike in uninsured patients, along with people delaying medical care since they cannot afford it.
The report also warned that the policy's end would have an outsized impact on low-income Black and Latino people. Those two groups are twice as likely to be enrolled in Medicaid compared to non-Hispanic Whites — and they have suffered greater hospitalization and death rates from COVID-19.
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Free COVID-19 shots won't be as available as they used to be.
The public health emergency designation widened eligibility for free coronavirus vaccines under Medicaid.
But that will change for people without health insurance, since they will have start footing the bill for some shots, per the Kaiser Family Foundation.
However, those with private insurance will likely be okay. Under changes enacted through the CARES Act in March 2020, insurers must provide access to vaccines at no cost to their beneficiaries since they are now considered preventive care.
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Some people will have to start paying for COVID-19 testing once federal funding dries up with the end of the emergency designation.
The declaration mandates state Medicaid programs to cover testing at no charge to enrollees. A similar rule is in place for private health insurance as well, requiring coverage for up to eight over-the-counter COVID-19 tests per month for their beneficiaries.
Americans could soon be left paying out-of-pocket for their COVID-19 testing and medical care. Some testing manufacturers are charging $100 per test, ABC News reported.
The Biden administration is pushing Congress to set aside extra COVID-19 funding. But it ran aground last month due to Republican resistance to fresh federal spending that's not redirected from existing programs.
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