700K people dropped from health care plan in blue state

Nearly 700,000 Americans in Illinois have been removed from a health care plan over a two-year span, according to new data from KFF, a nonprofit health policy research organization. These individuals were disenrolled from the state’s Medicaid program as part of a broader national “unwinding” effort that followed expanded pandemic-related coverage.

Medicaid enrollment during COVID

During the COVID-19 pandemic, several states, including Illinois, expanded access to Medicaid through the Affordable Care Act. Under federal emergency provisions, states were required to maintain continuous coverage for Medicaid recipients, even if they became ineligible. Once the coverage requirement expired, states were allowed to begin reassessing eligibility and removing those who no longer qualified. In March 2023, Illinois had 3,826,461 people enrolled in Medicaid. By 2025, enrollment had dropped to 3,146,295, according to KFF data.

Enrollment drops

This marked a decline of nearly 700,000 recipients. However, enrollment in Illinois remains above pre-pandemic levels. Compared to February 2020, Medicaid enrollment in the state is still about 7 percent higher. “The unwinding has taken place over a year and Medicaid enrollment is still higher now than in the pre-pandemic period,” Kathleen Adams, professor of health policy and management at Emory University, told Newsweek.

Other states impacted

Illinois is not alone. Larger states such as California, Florida, New York and Texas have seen even more substantial drops in Medicaid enrollment. However, the rate of disenrollment varies depending on whether a state expanded Medicaid under the ACA and how each state handled the unwinding. “Some states that had not expanded Medicaid under the ACA did so recently and many of them show the largest increases in enrollment from their pre-pandemic levels,” Adams said.

Health care options

For many in Illinois, the loss of Medicaid coverage has been followed by enrollment in other insurance options. However, for others, it could mean falling through the cracks of the health care system entirely. There is growing concern that increasing numbers of uninsured Americans may avoid seeking medical care due to cost. “If these individuals are not able to find a source of other coverage such as Employer Sponsored Insurance or through the subsidized exchanges, they will have lower access to needed health care, face higher costs if they obtain care and could impose costs on the health care system as they are forced to seek care in ERs or other publicly subsidized sources of care,” Adams explained.

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