June 1, 2011
Source: The Kaiser Family Foundation
To ensure coordination of eligibility and coverage across the different health care programs, the ACA requires states to make major changes in the way that they determine eligibility for Medicaid and CHIP in order to align with the income tax-based rules for premium credits in the exchanges. The biggest change involves how income and household size are defined to determine eligibility for Medicaid and CHIP (as well as the exchange premium credits). This issue brief explains the new rules, and describes the differences between these new rules and the current income counting rules used in Medicaid and CHIP.