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New Federal Rules Strip Medicaid Coverage From Hundreds of Thousands of Immigrants

Oct 4, 2026
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New Federal Rules Strip Medicaid Coverage From Hundreds of Thousands of Immigrants
A sweeping set of immigration-related health-care restrictions contained in President Donald Trump’s 2025 “One Big Beautiful Bill Act” finally took effect on October 1, and the human impact is becoming clear. State tallies compiled by KFF Health News and published on October 4 show that more than 281,000 lawfully present immigrants in nine states and Washington, D.C., are expected to lose federally funded Medicaid or Children’s Health Insurance Program (CHIP) coverage this month. Florida alone has identified nearly 177,000 affected enrollees, while North Carolina, Arizona, New Jersey, and Washington state each project five-figure losses. The new rules sharply narrow the categories of non-citizens for whom states may claim the federal Medicaid match. Going forward, full-scope federal funding is generally limited to lawful permanent residents (green-card holders), qualifying Cuban and Haitian entrants, and citizens of the Micronesian, Marshallese and Palauan Freely Associated States. Refugees, asylees, trafficking survivors and many humanitarian parolees who have not yet adjusted status are among those losing eligibility, although emergency Medicaid remains available. States have scrambled for months to verify beneficiaries’ immigration status using SAVE and other federal databases before sending termination notices. California has appropriated roughly US $365 million to move its projected 148,000 affected immigrants onto a purely state-funded program through mid-2027. New York and Pennsylvania operate similar safety-net schemes, but other states plan no back-ups, meaning many people could join the ranks of the uninsured just as flu and RSV season begins. Health-policy analysts expect the disenrollments to ripple through employers and insurers that rely on a mobile, often bilingual workforce. Hospitals in agriculture and hospitality hubs warn that bad debt will rise as uninsured patients forgo preventive care. At the federal level, the Congressional Budget Office projects the Medicaid provisions will trim deficits by US $6.2 billion by 2034 but leave roughly 100,000 additional people uninsured in an average year. Advocates counter that the state tallies already dwarf the CBO forecast. For global-mobility managers, the lesson is clear: employees or dependents on humanitarian statuses can no longer count on Medicaid in most states. Companies sending staff to the United States should budget for private insurance or explore state-specific options, and current assignees should be briefed on appeal rights and alternative coverage before termination letters arrive.
Source: yourNEWS

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