Assume that in State X only someone earning under $12,000 per year is eligible for Medicaid. One year, John earned $11,500 and so was eligible for and received. Medicaid assistance. However, because of the "earned income tax credit", he received an extra $1000 from the IRS and thus, in effect earned $12,500 is he now no longer eligible for Medicaid because he earns too much?

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In the scenario described Johns Medicaid eligibility is determined based on his annu... View the full answer