Medicaid Income Limits Affect Career Decisions for Disabled Workers

Why it matters locally: California's disabled workforce could be significantly impacted by federal Medicaid income limits, potentially forcing individuals to choose between career advancement and essential health benefits provided through Medi-Cal, the state's Medicaid program. New federal work requirements for Medicaid could further complicate this balance for employed Californians with disabilities.

Some individuals with disabilities, who are currently employed, express a desire to increase their work hours and advance their careers. However, they indicate that increasing their earnings can jeopardize their eligibility for Medicaid coverage. This presents a conflict for them, as they must decide between career progression and access to essential health benefits. Erica Carter of Sioux City, Iowa, works as a finance manager for the Omaha Nation public school district in Nebraska. She reported that her pay exceeded the threshold for an Iowa Medicaid program. Carter stated she then had to choose between leaving her job or losing her benefits. Individuals affected by the current income limits state that these rules discourage them from pursuing higher-paying jobs or working additional hours. They report that the potential loss of Medicaid coverage, which often includes personal care services and medical equipment, outweighs the benefits of increased income. New work requirements for Medicaid are scheduled to take effect next year. These changes come as some beneficiaries already in the workforce report challenges in balancing employment and health coverage.