Although even deeper cuts were avoided in the state budget adopted this week, about 17,700 Connecticut low-income parents will no longer be eligible for Medicaid health insurance coverage come August.
As part of state budget cuts last year, the income eligibility cap was reduced from $48,843 for a parent in a family of four to $37,665, which applied to nearly 19,000 parents. Technically, the change was made by lowering the income limit for Medicaid eligibility from 201 percent of the poverty level to 155 percent.
For about 17,700 of those parents, loss of eligibility was deferred a year until Aug. 1 because they had earned income from paid employment and under federal rules were able to keep their coverage for a year. Those who have only unearned income, such as Social Security and unemployment, lost their coverage last September.
Gov. Dannel P. Malloy had proposed lowering the income limit for Medicaid eligibility for low-income parents again this year — from 155 percent of the federal poverty level to 138 percent, but it did not make it into the final state budget approved by the General Assembly this week. This would have affected another 8,700 parents, resulting in a savings of about $900,000 next year.