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$90 Pension Raise Pushes Retiree $22 Over Medicaid Limit

Original: Her Union Pension Gave Her a $90 Raise in January. It Pushed Her $22 Over Medicaid's Income Line, and the Nursing Home Wanted the Whole Month's Bill

A union retiree received a $90 cost-of-living increase in her pension in January, which lifted her income $22 above Medicaid's eligibility threshold. As a result, her nursing home demanded she pay the entire month's bill out of pocket. The case highlights how rigid income cutoffs in Medicaid can create steep financial cliffs for seniors, where a tiny raise triggers the loss of benefits worth far more than the extra income.

Why now: It is a striking example of a benefits cliff, where a small pension increase causes a disproportionate loss of Medicaid coverage.

Medicaid

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• Her Union Pension Gave Her a $90 Raise in January. It Pushed Her $22 Over Medicaid's Income Line, and the Nursing Home Wanted the Whole Month's Bill · 24/7 Wall St.

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