A recent report from the Alabama Medicaid Agency revealed that 251,734 Alabamians have been removed from Medicaid since last summer, bringing the total number of enrollees down to 1.1 million. This decline is attributed to the expiration of pandemic-era federal protections that prevented states from removing individuals from the program.
The report also noted that Medicaid enrollment saw a monthly decrease of 22,140 in May, with a total reduction of nearly 18.3% from its peak last year. The removal of individuals from the program was primarily due to changes in eligibility or procedural reasons.
Demographic data showed that women and adults made up the majority of individuals who lost Medicaid coverage between April and May. White Alabamians comprised the largest share of those removed from the program, followed by black and Hispanic Alabamians.
Despite the shrinking Medicaid rolls and strict eligibility criteria in Alabama, there are ongoing calls for the state to expand its Medicaid program. State lawmakers have begun exploring the possibility of expansion through a private-public model, but Governor Kay Ivey has expressed skepticism about the idea due to concerns over costs.
Alabama’s Medicaid Agency remains the state’s largest General Fund budget expense, with a record $955 million allocated for fiscal year 2025. As one of the ten states that have yet to expand Medicaid under the Affordable Care Act, the debate over expansion continues in Alabama.
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