By: Jasmine Young
Executive Summary
Federal law has prohibited federal payments for health care services provided to adults and youth who are incarcerated—known as the “inmate exclusion.” To comply, states implemented a policy that would either terminate or suspend an adult incarcerated individual’s Medicaid eligibility. As of January 1, 2026, the Consolidated Appropriations Act of 2024 prohibits all states from terminating an individual’s Medicaid eligibility upon becoming incarcerated. This factsheet explains the new legislative mandate and the different suspension approaches states can adopt to comply with it; and explains additional federal Medicaid eligibility and coverage rules that affect adults and youth who are incarcerated.
