Family size and income determine eligibility for Medicaid.
Medicaid is a federally backed form of health insurance offered to people who meet the federal poverty guidelines and can't afford to purchase health-care coverage from a private insurance company.
History
Poverty guidelines for government programs were established by the U.S. Department of Health and Human Services in 1965. New poverty guidelines usually are released each year, in January or February. However, the updated 2010 guidelines were delayed by congressional action and weren't published until August.
Significance
Poverty guidelines are a baseline for Medicaid program eligibility as well as many other government-subsidized assistance programs. The guidelines provide an overall idea of poverty throughout the U.S.. The guidelines are adjusted in states with a higher cost of living, such as Hawaii, based on the consumer price index for that area.
Considerations
Income and family size are considered when determining poverty guidelines. For instance, in 2010, the maximum income allowed to qualify for Medicaid was $22,050 for a family of four and $10,830 for a single person. The family size includes everyone living in a residence. Poverty guideline amounts are higher in Alaska and Hawaii.
Tags: poverty guidelines, family size
