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Can You Be Dropped from Medicaid?

Medicaid
Can You Be Dropped from Medicaid?

Yes, there are cases in which you can be dropped from Medicaid, and it can be abrupt. Medicaid has very strict requirements that relate to income and household size, as well as working hours. Every state is slightly different, but here are some good rules of thumb to follow.

Medicaid Is Evaluated Monthly

Losing Medicaid eligibility can be shocking if it happens to you. It may feel like the rug has been pulled out beneath your feet. What you need to understand is that Medicaid qualifications are reevaluated monthly. Any changes to your income or work situation during that month may affect your eligibility.

One case in which people find themselves on this type of health insurance? They have lost their job and are now on unemployment insurance. Generally, if someone has been unemployed and getting unemployment, and their family is of a certain size, then they will qualify for this type of coverage. However, if that person takes on extra work, even something that just pays a few hundred dollars more, it can kick them out of eligibility.

Note that this doesn’t always apply to everyone in the family. Often, the adults in the family will be dropped from Medicaid. However, the children will still be eligible, or a pregnant mother will still be eligible. It can really vary from situation to situation.

Just don’t be surprised if you have been earning a little more than usual and then, boom! You get a letter in the mail that says you’re no longer eligible for Medicaid.

What is Medicaid Eligibility? When Does Medicaid End?

Eligibility and health coverage are determined state-by-state, with different states having different requirements. All of the states have an equation that they use which calculates the upper limit in household income. They calculate for the number of people in the household, and if you cross that state’s Medicaid threshold, you could be dropped from eligibility.

Some states, per a 2018 amendment to the law, have put into effect working requirements that may require program recipients to work as much as 20 hours per week to remain eligible. Though these requirements vary from state to state, they will never apply to those older than 65. Nor will they apply to pregnant women, people who are legally disabled, and children.

You may be asking “I don’t qualify for Medicaid. Now what?” We can help.

Still looking for the right Health Insurance Plan? Browse our plans here.

May 23, 2022
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