Reentry Myth Busters: Medicaid Suspension vs. Termination

The Reentry Myth Busters are a series of fact sheets created by the partner agencies within the Federal Interagency Reentry Council's (FIRC) and intended to clarify existing federal policies that affect individuals who were formerly incarcerated and their families.

This fact sheet addresses the following:

Myth: Medicaid agencies are required to terminate benefits if an otherwise eligible individual is incarcerated.

Fact: States are not required to terminate eligibility for individuals who are incarcerated based solely on inmate status. States may suspend eligibility during incarceration, enabling an individual to remain enrolled in the state Medicaid program, thereby facilitating access to Medicaid services following release.