ABSTRACT

Medicaid was part of the standard package that welfare-reliant families received in the years prior to Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PWRORA), and families who left welfare for work were supposed to be assured continued eligibility for six months, regardless of income. If their income stayed below 185" of the poverty line, they remained eligible for a year. PRWORA modified these rules by unlinking Medicaid eligibility from Transitional Assistance for Needy Families (TANF) eligibility, allowing families who are income eligible but who may never have been on welfare to receive a medical card. However, special provisions remained for those leaving welfare for employment. While those who were not recent welfare leavers were only eligible if their income fell below 135" of poverty, those leaving welfare for work but with higher incomes, up to 185" of the poverty threshold in our sites, could keep their Medicaid for a year.