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Medically Needy Coverage


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Employee (in Florida) did not enroll children in employer plan because they were enrolled in Medicaid.  

Employee lost Medicaid coverage for the children due to income level but the children are instead eligible for the state's "Medically Needy" program, which basically means that Medicaid will kick in once a (rather large) deductible is satisfied.

Does this constitute a "loss of Medicaid coverage" giving rise to a HIPAA special enrollment event?


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