In recent months, many Americans have unexpectedly received letters informing them that their Medicaid coverage has been terminated without a clear explanation. They didn’t move, their income didn’t change significantly, and no one from the government contacted them directly. This situation raises a serious and widespread question: Why did I lose Medicaid coverage?

Why Are So Many People Starting to Lose Medicaid Coverage in 2025?

There are multiple reasons why people across the United States are losing Medicaid coverage. One of the most common is that states have resumed the redetermination process, meaning they are reviewing each recipient’s eligibility now that the COVID-19 emergency protections have ended. If you haven’t updated your address, failed to respond to verification letters, or missed income documentation, your coverage may be terminated even if you still qualify.

Beyond administrative issues, a newly passed federal law called the One Big Beautiful Bill Act passed in July 2025 is quietly affecting millions of Americans. The law introduces stricter requirements to remain eligible for Medicaid and has significantly reshaped how the program operates. Understanding this new policy shift is essential and A+ Insurance Designers is here to help you make sense of it and find solutions to keep you covered.

The Most Common Reasons People Are Losing Medicaid

1. You didn’t update your information on time

Many states are tightening Medicaid eligibility checks. If you don’t respond to renewal letters that often request updated information like your name, age, or address, you could lose your coverage even if you still qualify. Not updating your mailing address is one of the most common mistakes. This matters because Medicaid rules can differ by state and even by county.

2. The redetermination process after COVID

During the COVID-19 pandemic, Medicaid beneficiaries were covered under a policy called Continuous Medicaid Coverage. This meant they did not have to re-verify their eligibility each year. However, since this policy ended in 2023, states have resumed large-scale redetermination reviews to determine who still qualifies.

According to data from KFF, more than 20 million people have gone through what is now known as the “unwinding” process. Many of them lost their coverage not because they became ineligible, but because of administrative hurdles—failing to turn in forms, not knowing the rules had changed, or simply not receiving the correct notices. These are all common reasons why many Americans are losing Medicaid without even realizing it.

3. Your income increased slightly above the limit

Medicaid has a strict income cap. Sometimes, a small raise, a few extra work hours, or switching from part-time to full-time can push your income just over the limit. Even a few hundred dollars can be enough to disqualify you. Many people do not find out until they try to see a doctor or fill a prescription and discover their coverage has ended.

Facing to Lose Medicaid Coverage? What the Big and Beautiful Law Changes Mean for You

One of the biggest shake-ups to Medicaid came with the One Big Beautiful Bill Act, passed by Congress in July 2025. This legislation has been described as the most sweeping reform of Medicaid since the Obama era.

It is not just a budget bill. It is a comprehensive package of changes that could cause millions of people to lose coverage without realizing the true reason why.

Here are four major changes under the One Big Beautiful Bill Act:

1. Work requirement: Minimum of 80 hours per month

Adults ages 19 to 64 (excluding those with disabilities or who care for young children) must now prove they are working, attending school, or volunteering at least 80 hours each month. This may seem simple, but surveys from KFF and the Urban Institute show that more than 75 percent of people who lost coverage under similar rules in Arkansas were still eligible. They just didn’t have the right paperwork.

2. Eligibility reviews every 6 months

Instead of an annual renewal, the law now requires states to check Medicaid eligibility every six months. This doubles the risk of being dropped due to missing documents or system errors.

3. Copays up to $35 per visit

If your income is between 100 and 138 percent of the federal poverty level, you may now be charged up to $35 for doctor visits, tests, or treatments. For many families already on tight budgets, this is a serious obstacle.

4. Defunding community health centers

Organizations such as Planned Parenthood could lose Medicaid funding, cutting off access to care for millions, including women, LGBTQ+ individuals, and immigrants. A federal judge has temporarily paused this provision for 14 days while it undergoes legal review.

How serious is the impact of this law?

• According to KFF, over 10 million people could lose coverage in the next three years if all states fully implement the new requirements.

• The Congressional Budget Office estimates this law could save the federal government over 1.1 trillion dollars, primarily by reducing Medicaid and SNAP.

• More than 300 rural hospitals are at risk of closing due to lost funding.

• Advocacy groups such as NASHP and Feldesman Tucker warn of devastating consequences for low-income Americans.

How to Stay Covered If You Lose Medicaid Coverage

If you have received a termination notice or suspect you will soon, don’t panic. There are still ways to maintain your health insurance legally and affordably. Start by considering the following steps:

• Review your eligibility. Some states allow you to reapply or file an appeal if your coverage ended due to administrative reasons.

• Review your eligibility. Some states allow you to reapply or file an appeal if your coverage ended due to administrative reasons.

• Explore alternative insurance options. Especially if you moved to a new state, experienced income changes, or no longer meet Medicaid criteria.

• Keep every official document. Letters, notices, and forms can be critical in correcting your case.

Don’t miss the opportunity to enroll in ACA coverage

If you are no longer eligible for Medicaid, you may still qualify for health insurance through the ACA Marketplace, also known as Obamacare. This federal program helps individuals buy private plans at a reduced cost through premium tax credits.

Losing Medicaid gives you access to a Special Enrollment Period (SEP), a 60-day window to choose a new ACA plan. If your income is low to moderate, you may qualify for subsidies that cover 90 to 100 percent of your monthly premium, depending on your state and household size.

ACA plans also offer essential health benefits, including:

• Preventive care

• ACA plans also offer essential health benefits, including:

• Maternity services

• Mental health care

• Prescription medications

• And more

Struggling with ACA? We’re a Licensed ACA Agency and Ready to Help

At A+ Insurance Designers, we understand how the ACA works. We live and breathe it every day. As a licensed agency based in Texas, we have helped thousands of people across nearly every state make a smooth transition from Medicaid to ACA plans.

We support multiple languages: Vietnamese, English, and Spanish. More importantly:

• Our service is completely free

• We don’t push expensive plans. We help you find what fits your situation

• You only need 15 to 30 minutes to see what you qualify for

You don’t have to figure this out alone. We will walk you through every step, from checking your income to choosing the right plan and submitting your Marketplace application.

Conclusion

Losing Medicaid coverage can feel sudden and unfair, but you are not powerless. Whether it’s due to administrative errors, income changes, or new federal rules, you still have affordable options through the ACA. A+ Insurance Designers is here to help you make the transition with confidence. Reach out today to explore your options and stay protected.