Bill would provide a temporary health care option for those in the coverage gap until non-expansion states like Alabama finally expand Medicaid

Washington D.C. – U.S. Reps. Terri Sewell (AL-07) and Shomari C. Figures (AL-02) introduced the Bridge to Medicaid Act to finally provide health insurance to the more than 100,000 Alabamians in the coverage gap. The legislation would provide a temporary health care option for people in the Medicaid coverage gap until non-expansion states like Alabama finally expand Medicaid. 

“Improving access to quality, affordable health care is one of my top priorities in Congress,” said Rep. Sewell. “Because of the refusal by the State of Alabama to expand Medicaid, more than 100,000 low-income Alabamians who would otherwise qualify for health insurance coverage are being forced to go without care, putting their health and their lives at risk. If the State of Alabama won't expand access to health care for our underserved communities, we in the federal government must take action. That’s why I’m proud to join Congressman Figures in introducing the Bridge to Medicaid Act which would help thousands of Alabamians see a doctor, obtain medications, and afford life-saving care.”

“Alabama’s failure to expand Medicaid has left more than 100,000 hardworking people—many of them in my district—without access to affordable, quality health care,” said Rep. Figures. “This bill will provide relief to people who would have health care coverage if Alabama would simply expand Medicaid, as 40 other states have already done.” 

The Bridge to Medicaid Act would extend subsidies to individuals who are in the coverage gap and who cannot afford insurance on the Marketplace for 3 years. Individuals in non-expansion states making between 100 percent and 138 percent of the federal poverty level would also qualify for these subsidies and enhanced plans.

Coverage details:

• Beginning in 2026, current Affordable Care Act (ACA) premium subsidies would be available to those below 138 percent of the federal poverty level.
• In the first year, those under 138 percent of the federal poverty level would be eligible for plans with reduced deductibles and cost-sharing (defined as a 94 percent actuarial value).
• In 2027 and 2028, these individuals would be eligible for further reductions in cost-sharing charges (plans would have a 99 percent actuarial value) so they can better afford to get care.
• Continuous enrollment applies – once an individual is deemed eligible based on income, they can enroll at any time during the year. 
• The Federal Medical Assistance Percentage (FMAP) for existing expansion populations in expansion states would be enhanced by 3 percent (from 90 percent to 93 percent) for the duration of the coverage gap policy (from 2026-2028).

Since coming to Congress, Rep. Sewell has championed federal efforts to expand health care access for Americans caught in the coverage gap, including the more than 100,000 Alabamians. In 2022, she led her colleagues of the New Democrat Coalition in a letter urging congressional leadership to close the coverage gap by enhancing Affordable Care Act (ACA) tax credits. She has also sponsored legislation to create a Medicaid-like program in non-expansion states.

Bill text is available here.