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Medicaid will provide coverage for uninsured with low incomes under health care reform law
Kaiser Family Foundation
Medicaid plays a major role in covering more of the uninsured under the new health care reform law. The new law includes a significant expansion of Medicaid, an individual requirement to obtain health insurance, and subsidies to help those with low incomes buy coverage through newly-established Health Benefit Exchanges.
Today, Medicaid is the nation’s primary health coverage program for low-income and high-need populations. The program also serves as the foundation for coverage of the low-income population under health care reform.
Before health care reform, Medicaid, together with the Children’s Health Insurance Program, offered broad coverage to children with median eligibility levels up to 235% of poverty level.
However, Medicaid coverage for parents was much more limited and federal law generally prohibited Medicaid coverage for adults without dependent children.
The new law bases eligibility for Medicaid on income without categorical restrictions for individuals under age 65 and establishes a national floor for Medicaid coverage at 133% of poverty level ($14,404 for an individual or $29,326 for a family of four in 2009).
