Medicaid Expansion Associated with Increased Income for Low-Income Adults, Study Finds

A recent study conducted by researchers from the UC Berkeley School of Public Health reveals that individuals who gained Medicaid eligibility through the 2014 expansion experienced a significant increase in personal income, averaging 9.6%. This research focused on states that expanded Medicaid under the Affordable Care Act (ACA), also known as Obamacare, and compared income changes in those states to states that chose not to expand access, including Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming.

The ACA's Medicaid expansion raised income eligibility thresholds from 106% to 138% of the federal poverty level, allowing more low-income individuals, including childless adults, to qualify for Medicaid for the first time. The study found that increased access to Medicaid not only improved health outcomes but also had notable economic benefits, such as boosting individual income. Moreover, individuals newly eligible for Medicaid reported taking less unpaid leave from work, suggesting better health management and increased work capacity.

The findings strengthen the argument that Medicaid improves economic well-being. As Medicaid coverage expands, individuals can pursue employment without the fear of losing health insurance, and their health improvements may lead to higher earning potential. Conversely, proposals like the One Big Beautiful Bill that aim to restrict Medicaid access and impose work requirements could reduce coverage and negatively impact economic stability for vulnerable populations.

The study emphasizes that maintaining and expanding Medicaid can serve as an economic catalyst and a health safeguard, highlighting the importance of policy decisions that influence healthcare access. Researchers advocate for continued support and investment in Medicaid as a means to promote both health and economic resilience.

Source: https://medicalxpress.com/news/2025-09-medicaid-eligibility-higher-income.html