The Affordable Care Act simplifies and streamlines eligibility for health care programs. By changing the method for determining whether someone can get Medicaid or CHIP (the Children’s Health Insurance Program), the law aligns eligibility processes for these programs with the eligibility process for financial assistance in the health insurance marketplaces.
The new method uses what is known as MAGI (modified adjusted gross income), which is essentially the amount of income people report on their taxes. Since all states will use this new method, it will be easier for consumers to know what they are eligible for.
Use this fact sheet to learn more about MAGI and about how the new method will help people get and keep health coverage while streamlining administrative processes.