Medicaid and CHIP Drop Age Limits for 12-Month Continuous Coverage, But Not Until 2027

The “Stabilize Medicaid and CHIP Coverage Act” is making a crucial, if delayed, change to how people keep their health insurance through public programs. Essentially, this legislation locks in 12 months of continuous coverage for more people on Medicaid and the Children’s Health Insurance Program (CHIP) by removing an old age restriction.

The 12-Month Lock-In: Less Paperwork, More Stability

Right now, many states offer 12 months of continuous Medicaid enrollment, but that protection was often limited to children under 19. This bill, specifically Section 2, changes that by removing the “under the age of 19” limit from the continuous enrollment rules in the Social Security Act (Section 1902(e)(12)). What this means in real life is that once you’re enrolled, you stay enrolled for a full year, even if your income fluctuates slightly or you change jobs—as long as you don't move out of state or voluntarily drop coverage.

Think about a young adult, say 20 years old, who is using Medicaid while working a few part-time jobs. Under the old rules, if their hours picked up for a few months, they might have lost coverage and had to reapply later, creating a gap in care. This change stabilizes that. By removing the age cap, the bill extends that crucial 12-month safety net to older teens and young adults on Medicaid, reducing administrative churn and preventing people from needlessly losing access to doctors and prescriptions.

CHIP Gets Consistent, Too

The bill also cleans up the rules for CHIP (Section 2107(e)(1)(K)). Historically, CHIP language focused on the continuous enrollment of a “child.” The new law updates this to use the term “individual” instead. This is mostly about consistency and making sure the expanded continuous enrollment protection applies across the board, matching the Medicaid changes.

Basically, both programs are now aligned in providing a full year of coverage stability regardless of age, which is a huge win for families who often struggle to keep up with annual paperwork and eligibility reviews while juggling work and school schedules.

The Catch: You’ll Be Waiting a While

While the expansion of continuous coverage is a clear benefit, don't expect these changes to kick in tomorrow. The bill explicitly states that these amendments won't take effect until the first day of the first fiscal quarter that begins after December 31, 2026. That’s a significant delay, meaning the increased stability won't be realized for several years. For those who need stable coverage now, this delay is the biggest practical hurdle in an otherwise beneficial piece of legislation.