By skyforbes 
Imagine working hard, getting a small raise — and then losing your health insurance entirely. That’s the reality for millions of Americans trapped by the Medicaid cliff. This policy pitfall punishes upward mobility, creating a system where doing better financially can mean doing worse in health.
What Is the Medicaid Cliff?
The “Medicaid cliff” occurs when an individual’s income rises just above the eligibility threshold for Medicaid, instantly ending their coverage. Unlike gradual phase-outs in other assistance programs, Medicaid often cuts off benefits abruptly, leaving people uninsured and unable to afford private coverage.
For example, in many states, Medicaid eligibility for a single adult ends at about 138% of the federal poverty level — roughly $20,783 a year. Earning just $1 more could mean losing thousands of dollars’ worth of coverage.
Who It Hurts Most
The cliff hits hardest for:
- Low-wage workers whose income fluctuates month-to-month.
- Older adults not yet eligible for Medicare, particularly those in poor health.
- Communities of color, where higher rates of chronic illness and economic inequality amplify the cliff’s impact.