Becker's Healthcare April 12, 2021
Morgan Haefner

Thirty percent of Medicare beneficiaries are near-poor and may experience what is called a Medicaid coverage “cliff,” according to a study in Health Affairs.

Five things to know about the Medicaid coverage cliff:

1. The Medicaid coverage cliff is when beneficiaries have incomes that exceed the limit for Medicaid supplemental coverage, but don’t make enough to afford private supplemental insurance.

2. The income eligibility threshold for Medicaid supplemental insurance is 100 percent of the federal poverty level. Near-poor Medicare beneficiaries who make slightly more than that but not enough to buy additional coverage are 26 percentage points less likely to have supplemental coverage. As a result, they can experience higher cost-sharing.

3. In a study published in Health Affairs,...

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