Adults who fall into the Medicaid gap and reside in states that have not expanded Medicaid are not eligible for Medicaid coverage because their incomes are above state eligibility standards and are not eligible for Affordable Care Act Marketplace subsidies because their incomes are below the minimum federal eligibility standard.
Researchers presented three options for filling the Medicaid gap, based on different subsidy schedules, and explores how the effects of these reforms differ when they are based on Affordable Care Act (ACA) Marketplace benchmarks versus when they are available through a public option.
Under the reforms examined, savings from the public option will largely lower federal subsidy spending, granting policymakers the ability to increase federal matching rates for expansion states, which would further increase federal spending.
The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health Policy Center for more information specific to its staff and its recent research.
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