Excerpt from: National Health Law Program (click for full article)
One of the significant changes to the Medicaid program generated by the Affordable
Care Act (ACA) is the introduction of a new methodology for evaluating income to determine eligibility: Modified Adjusted Gross Income (MAGI). MAGI will be used to evaluate available income for most Medicaid applicants and enrollees, beginning in 2014, as well as for determining eligibility for the Children’s Health Insurance Program (CHIP) and for Advance Premium Tax Credits (APTCs) and Cost Sharing Reductions (CSR) for applicants for financial assistance under the new insurance Exchanges. In the past couple of years, both regulatory and sub-regulatory guidance has been given on the subject of MAGI, though some questions about how states will actually apply the new rules remain unanswered. This issue of the Health Advocate broadly reviews some of the general issues regarding the change-over to the MAGI methodology, but does not purport to cover all the specific MAGI details. NHeLP plans to publish an Advocate’s Guide to MAGI that will address the issue in a much more detailed fashion.
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