Many Americans miss out on Medicaid coverage because of persistent myths about who qualifies. The truth is that Medicaid covers over 77 million Americans, including working adults, children, pregnant women, seniors, and people with disabilities. If you have heard that you need to be unemployed, have zero assets, or be a parent to qualify, those beliefs are likely wrong. Use our free eligibility screener to find out what you actually qualify for in about two minutes.
Myth 1: You Have to Be Unemployed to Get Medicaid
This is one of the most widespread Medicaid myths. In reality, millions of Medicaid enrollees work full time or part time. Medicaid eligibility is based on income level, not employment status. If your household income falls below your state's threshold, you can qualify whether you work 40 hours a week or zero.
In states that have expanded Medicaid under the Affordable Care Act, most adults with household income at or below 138% of the Federal Poverty Level (FPL) qualify regardless of employment. That includes workers at restaurants, retail stores, gig jobs, and small businesses that do not offer health insurance.
Medicaid Income Limits by Household Size (Expansion States)
The following table shows approximate annual income limits at 138% FPL. These figures are updated each year, so check with your state Medicaid office or use our screener for current amounts.
| Household Size | Approximate Annual Income Limit (138% FPL) |
|---|---|
| 1 | ~$20,800 |
| 2 | ~$28,200 |
| 3 | ~$35,500 |
| 4 | ~$42,900 |
| 5 | ~$50,300 |
| 6 | ~$57,600 |
Note: These are approximate figures based on recent FPL guidelines. Actual thresholds vary by state and are updated annually. Use our eligibility screener for current limits in your state.
Myth 2: Medicaid Is Only for People with No Income
Medicaid is not a zero income program. It is designed for low income individuals and families, which includes millions of working Americans. The income limits are higher than most people expect, especially for children and pregnant women.
Income Thresholds Vary by Category
| Eligibility Group | Typical FPL Threshold | Who This Covers |
|---|---|---|
| Adults (expansion states) | Up to 138% FPL | Working and non-working adults under 65 |
| Children | Up to 200% FPL or higher | Kids in most states qualify at higher income levels |
| Pregnant women | Up to 200% FPL or higher | Many states set even higher limits for pregnant women |
| Seniors and disabled | Varies by state | Often based on SSI income standards |
| Parents (non-expansion states) | Varies widely | Some states set very low limits for parents |
Many states cover children at 200% to 300% FPL through Medicaid and the Children's Health Insurance Program (CHIP). Some states cover pregnant women at 200% FPL or above. The bottom line: you do not have to be destitute to qualify.
Myth 3: Only Children and Pregnant Women Qualify
Before the Affordable Care Act, Medicaid coverage for adults without children was extremely limited. That changed dramatically with Medicaid expansion. As of 2025, 40 states plus Washington, D.C. have expanded Medicaid to cover low income adults regardless of parental status.
In expansion states, single adults with no children can qualify if their income is at or below 138% FPL. This opened coverage to millions of adults who previously had no pathway to Medicaid.
What About Non-Expansion States?
In the states that have not expanded Medicaid, eligibility for adults without children remains very restricted. In some of these states, childless adults cannot qualify for Medicaid at any income level, creating what is known as the "coverage gap." If you live in a non-expansion state, you may still qualify for other programs. Check your eligibility to see all programs available to you.
Myth 4: You Cannot Own a Car or Have Savings and Qualify
This myth comes from how Medicaid used to work. Historically, many states imposed strict asset tests that limited the value of cars, savings accounts, and other property you could own.
Under the Affordable Care Act, states that use the Modified Adjusted Gross Income (MAGI) methodology for most Medicaid eligibility groups do not apply asset tests. This means for most adults, children, and pregnant women, your savings account balance, car value, and home equity are not counted.
When Asset Tests Still Apply
Asset limits may still apply to certain groups:
- Seniors (65 and older) applying for Medicaid long term care coverage
- People with disabilities in some eligibility categories
- SSI recipients whose Medicaid eligibility is linked to SSI rules
For the majority of applicants under 65, asset tests are not part of the eligibility determination. Your car, your modest savings, and your home will not disqualify you.
Myth 5: Applying for Medicaid Is Too Complicated
The application process has been significantly simplified since the Affordable Care Act. You do not need to visit a government office, hire a lawyer, or fill out a 50 page form. Here is how to apply:
Step by Step: How to Apply for Medicaid
- Check your eligibility first. Use our free screener to see if you likely qualify based on your income, household size, and state.
- Gather basic information. You will need your Social Security number, proof of income (pay stubs or tax return), proof of residency, and identification.
- Choose your application method. You can apply through:
- Your state Medicaid website
- Healthcare.gov (which will route you to Medicaid if you qualify)
- By phone through your state Medicaid office
- In person at a local Department of Social Services
- By mail using a paper application
- Submit your application. Most online applications take 15 to 30 minutes.
- Wait for a determination. States must process applications within 45 days (90 days for disability based applications).
- Respond to any requests. If your state needs additional documents, provide them promptly to avoid delays.
Many states now offer same day or next day eligibility determinations for straightforward applications. If your income clearly qualifies you, the process can be remarkably fast.
Myth 6: Medicaid Only Covers Basic or Low Quality Care
Medicaid is required by federal law to cover a comprehensive set of benefits. While the exact benefits vary by state, every state Medicaid program must cover:
- Inpatient and outpatient hospital services
- Physician and midwife services
- Laboratory and X-ray services
- Nursing facility services
- Home health services
- Preventive care and screenings
- Family planning services
- Pediatric and dental services for children (through EPSDT)
Many states also cover additional services such as prescription drugs, dental care for adults, vision care, mental health services, and substance use disorder treatment. Medicaid covers more services for children than almost any other insurance program in the country through the Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) benefit.
Medicaid vs. Common Alternatives
| Feature | Medicaid | Uninsured | Short Term Health Plan |
|---|---|---|---|
| Monthly premium | $0 in most cases | N/A | Varies |
| Deductible | $0 or very low | Full cost | Often high |
| Preventive care | Covered | Full cost | Often excluded |
| Prescription drugs | Covered in most states | Full cost | Often excluded |
| Mental health | Covered | Full cost | Often excluded |
| Pre-existing conditions | Covered | N/A | Often excluded |
| Dental (children) | Covered | Full cost | Rarely covered |
Myth 7: Immigrants Cannot Get Medicaid
Immigration status and Medicaid eligibility is more nuanced than most people realize. Here is what the rules actually say:
- U.S. citizens qualify based on income and other standard criteria.
- Lawful permanent residents (green card holders) may qualify, though some states impose a five year waiting period after obtaining their green card.
- Refugees and asylees typically qualify for Medicaid immediately, without a waiting period.
- DACA recipients are generally not eligible for full Medicaid in most states.
- Undocumented immigrants are not eligible for full Medicaid, but may qualify for emergency Medicaid, which covers emergency medical conditions regardless of immigration status.
- Lawfully present immigrants in some categories may qualify depending on the state.
- Children and pregnant women who are lawfully present may qualify in states that have opted to cover them without the five year waiting period.
Several states use their own funds to provide Medicaid or similar coverage to immigrant populations that federal rules exclude. The rules are complex and vary significantly by state, so it is worth checking your specific situation through our eligibility screener.
Frequently Asked Questions About Medicaid Eligibility
Can I qualify for Medicaid if I have a job?
Yes. Medicaid eligibility is based on income, not employment status. Many working Americans qualify for Medicaid, especially in states that have expanded coverage under the Affordable Care Act. If your household income falls below your state's income limit, you may be eligible even with a full time job.
Does Medicaid check my bank account?
For most applicants (adults, children, and pregnant women), Medicaid uses the MAGI methodology, which looks at income only and does not count assets like bank accounts, cars, or homes. Asset tests may apply to seniors seeking long term care coverage and some disability related eligibility categories.
Can I have Medicaid and employer insurance at the same time?
In some cases, yes. This is not common, but it is not prohibited. If you qualify for Medicaid and also have employer coverage, Medicaid can serve as secondary insurance and may help cover costs your employer plan does not, such as copays and deductibles.
How long does it take to get approved for Medicaid?
States are required to process Medicaid applications within 45 days (or 90 days for disability based applications). Many states now process straightforward applications much faster, sometimes within a few days or even the same day for online applications.
What if I earn slightly too much for Medicaid?
If your income is above the Medicaid limit, you may qualify for subsidized health insurance through the ACA Marketplace (Healthcare.gov). Premium tax credits can significantly reduce your monthly costs. You may also qualify for other assistance programs like SNAP or LIHEAP. Check all programs you may qualify for with our free screening tool.
Do I have to be a U.S. citizen to get Medicaid?
No. While U.S. citizens make up the majority of Medicaid enrollees, lawful permanent residents, refugees, asylees, and other lawfully present immigrants may also qualify. Rules vary by state and immigration category. Emergency Medicaid is available regardless of immigration status for qualifying emergency conditions.
Will applying for Medicaid affect my immigration status?
Receiving Medicaid generally does not affect your immigration status or green card application. However, immigration rules can change and situations vary. If you have concerns, consult an immigration attorney for advice specific to your situation.
Stop Guessing and Check Your Eligibility
The biggest myth of all may be that figuring out your Medicaid eligibility is too confusing to bother with. It does not have to be. Our free eligibility screener checks your potential eligibility for Medicaid and 10 other government assistance programs in about two minutes. You will get personalized results based on your income, household size, and state of residence.
Do not let myths keep you from coverage you may be entitled to. Check your eligibility now.
