Medicaid Coverage Expanded for Thousands of People in 5 States

The U.S. Department of Health and Human Services (HHS) has now approved five states to offer Medicaid for Americans transitioning out of incarceration.

Read more: What Is a Checking Account and How Do They Work?

The approvals for Illinois, Kentucky, Oregon, Utah and Vermont mark a significant shift from the way Medicaid has historically been available to those leaving prison.

Typically, adults and minors transitioning out of prison have been forced to deal with delays in getting Medicaid or CHIP (Children’s Health Insurance Program) coverage.

But now the five states will offer coverage before prisoners are released into the outside world and forced to navigate any gaps in coverage.

Already, California, Massachusetts, Montana and Washington allow inmates to get health care before they leave prison, but there are still millions going without coverage when they reenter their communities after serving time.

Read more: Compare Top Bank Account Bonus Offers

“The Biden-Harris Administration is working to ensure every American has access to high-quality, affordable health care. This is an essential step for advancing health equity in our nation,” HHS Secretary Xavier Becerra said in a statement.

“For people involved in the justice system, ensuring a successful transition back into the community includes having the health care supports and services they need. I’m pleased to see more and more states putting resources behind efforts that will ensure these individuals have what they need to thrive.”

Read more: Find the Best Free Checking Accounts

Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure said this will be the first time thousands of incarcerated people in Illinois, Kentucky, Oregon, Utah and Vermont will have that critical support during their transition.

“At the heart of that work are Medicaid and CHIP—programs that continue to bring states and the federal government together to meet the needs of our communities,” Brooks-LaSure said. “Under the Biden-Harris Administration, that’s meant more innovation than ever before to enhance public health and public safety.”

Incarcerated people often report higher levels of substance use disorders as well as chronic health conditions, making the guaranteed coverage sometimes an actual lifesaver, experts say.

“This is an incredible development not just for those incarcerated that qualify for assistance, but to the communities they’re being released into moving forward,” Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

“One of the reasons why it’s so difficult to break the chain of incarcerated individuals getting arrested, serving time, being released, and then end up back behind a cell is that those released have a hard time making any type of economic advancement. When money is not coming in, it’s easy to return to a life of illegal activities.”

Expanding health care coverage so that those being released know they have care means their health expenses will not be as difficult to obtain, Beene added.

“Incarcerated individuals are often released with little financial backing unless they have family or friends willing to pick up their bills for a period of time,” Beene said. “This greatly helps with one of those bills, and the hope has to be that if these states see success with this benefit, others will hop on board.”

Generally, inmates leave their time at prison with empty pockets, meaning one unexpected doctor bill can leave them with limited choices.

“They’re in a hole before they’ve even started,” Michael Ryan, finance expert and the founder of michaelryanmoney.com, told Newsweek. “This Medicaid coverage? Now they can focus on the important stuff—finding a job, a place to live—without worrying about medical bills hanging over their heads.”

Ryan also said he hopes other states are paying attention, as adopting similar policies could save them money in the long run.

“Emergency room visits? They’re through the roof when people don’t have insurance,” Ryan said. “I’ve crunched the numbers. It ain’t cheap.”

Healthier people are also less likely to end up back in the system, which means lower incarceration rates could be on the table if states protect Medicaid coverage for inmates leaving prison.

“And let’s not forget about getting people back to work,” Ryan said. “Healthy folks are more likely to land jobs and keep them. To me, that seems good for everyone’s bottom line.”

Still, Ryan acknowledges some states are concerned about the price tag when it concerns their short-term budgets. Others let politics get in the way, Ryan added.

“Some think it’s ‘soft on crime’ or big government overreach,” Ryan said. “And yes, it’s complicated to set up. Lots of moving parts between prisons, doctors, and Medicaid.”

“My two cents? States need to see this as an investment. Sure, it costs money upfront, but the payoff could be huge—lower health care costs, fewer repeat offenders, more people working and paying taxes. It’s a no-brainer.”