By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Not Poor Enough for Medicaid? Meet the ‘New’ Medicaid Doughnut-Hole
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Not Poor Enough for Medicaid? Meet the ‘New’ Medicaid Doughnut-Hole
Health Reform

Not Poor Enough for Medicaid? Meet the ‘New’ Medicaid Doughnut-Hole

Chris Hoffmann
Chris Hoffmann
Share
3 Min Read
SHARE

The U.S. House had yet another symbolic vote yesterday to repeal the health reform legislation.  While previous efforts to undo the law have been unsuccessful and the Senate will no doubt ignore the House action, GOP leaders are digging in on their opposition in advance of the fall elections.

The U.S. House had yet another symbolic vote yesterday to repeal the health reform legislation.  While previous efforts to undo the law have been unsuccessful and the Senate will no doubt ignore the House action, GOP leaders are digging in on their opposition in advance of the fall elections.

Amid the rancor, we have been evaluating the political and economic impacts of the June 28 SCOTUS ruling that gives states the option of whether or not to comply with ACA’s Medicaid expansion provisions that extends eligibility to individuals with income at or below 133% of the federal poverty level (FPL). With this flexibility, many states are contemplating setting eligibility at 100% FPL or below.

While the SCOTUS ruling maintains States’ rights granted by the Constitution, the potential outcome for up to 24 million individuals Americans is a “doughnut hole” – not poor enough for Medicaid and too poor for ACA’s federal tax subsidies (to offset the cost of insurance since subsidies will only be available to those with household income between 133% and 400% of the federal poverty level).

More Read

Tax
The Medical Device Sales Tax Suspension Could Be a Huge Opportunity – Don’t Let it Go to Waste
Preparing for 2014: Questions for ObamaCare’s Opponents
No Hospital Left Behind !
Big Names Changing the Future of Personalized Patient Care
Transformational and Disruptive Changes Are Coming to the Delivery System

Below 133% of FPL no subsidy is available via the exchanges because the legislation assumed that those individuals would be Medicaid eligible. Said differently, the SCOTUS ruling could leave millions of low income individuals without insurance.

  • Some of these individuals will likely get a hardship waiver so as not to be charged the tax for “no-insurance”, but they could still remain uninsured.
  • Other consumers who are just below the FPL requirement of subsidy eligibility may find themselves without insurance, and resort to “gaming the system” by over reporting income to get within the subsidy eligibility band.  It’s important to note that subsidies are only available for people purchasing coverage through the state Exchange (not through an employer).

While calculations are still early, states like Nevada estimate (that if they expanded to federal guidelines) they would have to pay an additional $567 million in Medicaid costs between 2014 and 2019 to provide health insurance to people who earn up to 133 percent of the federal poverty level.  This kind of thinking among states will influence whether they will refuse the fed’s funding offer of 93% of expansion costs through 2022…a lot of calculus, a lot of confusion.

Look for us to continue assessing and reporting on the impact of the Medicaid decision on Managed Medicaid, the dual eligible population and insurance exchanges. Until then, let us know what you think.

TAGGED:Medicaid
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Epidemiological Health Benefits
Personal and Epidemiological Health Benefits of Blood Pressure Management
Health
October 13, 2025
Traumatic Brain Injuries
Understanding Traumatic Brain Injuries: What Families Need to Know
Policy & Law
October 10, 2025
Remote Monitoring touchpoints
Remote Monitoring Touchpoints Patients Will Actually Follow
Technology
October 9, 2025
dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025

You Might also Like

Image
Health ReformPolicy & Law

The Geographic Divide: How Federalism Has Formalized Health Disparities

June 17, 2014

Ebola and the Bigger Patient Safety Issue

October 13, 2014
Caitlin Kelly
Health ReformPolicy & Law

How Would You Fix Healthcare? – Question and Answers.

January 16, 2013
hospital administration
BusinessFinanceHealth ReformHospital AdministrationPolicy & LawPublic Health

How to Be Named the Costliest Hospital in the Nation

May 30, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?