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Xavier Becerra, the health and human services secretary, suggested that states were doing far too little to make sure that children were not unfairly denied federal insurance.
Many of the children were eligible for federal aid, experts said, but errors have been common as states “unwind” assistance from earlier in the coronavirus pandemic.
Low-income people who wrongly lost Medicaid or Children’s Health Insurance Program coverage will keep their insurance, federal officials said.
Federal officials warned state agencies to review their systems for establishing eligibility, as they pare back Medicaid rolls. Children in particular may have been affected.
The legislation, which would fund the government through September, would significantly increase federal spending.