Despite the inclusion of a special provision in the new federal health care law, nearly 30 million Americans could still experience temporary loss of coverage if their income fluctuates in the course of a year.

 

Those affected by this potential problem use Medicaid, unless their income increases to the point where they are no longer eligible for the federal program. Before healthcare reform, individuals in this situation simply lost all coverage. But under the Affordable Care Act, Americans making more than 133% of the poverty line (about $13,800 per year) can replace their Medicaid coverage with assistance from state-run insurance exchanges that will help those earning up to 400% of the federal poverty level (about $41,500).

 

But moving from Medicaid to this new option takes time, and a new study estimated that as many as 28 million adults might “churn” in and out of health insurance programs for a month or two at time.

-Noel Brinkerhoff

 

With Health Care Reform, Income Swings May Mean Loss of Coverage (by Amanda Gardner, Health Day)

Issues In Health Reform: How Changes In Eligibility May Move Millions Back And Forth Between Medicaid And Insurance Exchanges (by Benjamin D. Sommers and Sara Rosenbaum, Health Affairs) (abstract only)