The high cost of taking away prisoners' Medicaid coverage

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She's been in and out of jail since she was 18. Every time she's been released, she's lost her disability benefits and her Medicaid coverage. That meant she couldn't afford her rent or her medication for her bipolar disorder until she was able to re-enroll, which could take weeks or months -- even if she went to all her appointments on time.

"That would put me into a bad spell of being depressed, and my moods would be bad," says Stone, 37, over the phone from the Douglas County Jail in Omaha, Nebraska. "And then I would end up doing something stupid like shoplifting to get alcohol. It's just a vicious cycle."

That critical gap in safety net programs, which has set Stone up for failure again and again, is a harsh reality for millions of people released from prison every year — and one that counties are now trying to get fixed.

Local jails and prisons are required to provide prisoners with adequate health care. But the interruption of federal and state programs inmates had been depending on can cause major problems, making it more likely that people will cycle in and out of jail.

Federal rules prohibit states from billing Medicaid for any inmate care unless the covered individual requires a hospital stay of at least 24 hours. They also cut off Social Security and Disability payments and some veterans' benefits. Medicaid benefits are taken away as soon as a suspect has been booked into jail, whether they've been proven guilty or not. If they are convicted and incarcerated, Social Security and VA benefits disappear 30 and 60 days later, respectively.

Some states simply suspend benefits, allowing inmates to pick them back up as soon as they're released. But 34 states still terminate enrollment either immediately or after the prisoner spends a certain period of time behind bars.

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