Milliman-Social Security and Modified Adjustment Gross Income: Estimated Impact to Medicaid Enrollment Under ACA

According to a report by Milliman, about 2.3 million individuals who receive Social Security benefits will also be eligible to receive Medicaid beginning in 2014 because of an income exclusion for Social Security under the health reform law. The report uses the new modified adjusted income formula (MAGI) under ACA, which excludes nontaxable Social Security and Supplemental Security Income, and estimated that 1 million individuals receiving Social Security or SSI income, along with 1.3 million of their spouses or dependents, would become eligible to receive Medicaid, in addition to their other income. The actual number of additional Medicaid enrollees as a result of the income exclusion will be closer to 1.3 million, because many of these individuals already are covered by Medicare or have health coverage through their employer.