Yes, you can get Medicaid if you have a job. Medicaid eligibility is based on your household income, not your employment status. If your income falls below your state's limit, you qualify whether you work part-time, full-time, or multiple jobs. According to KFF analysis, about 64% of working-age Medicaid enrollees who are not on disability or Medicare are employed full- or part-time.
The confusion comes from how Medicaid is discussed. People often assume it is only for people who are unemployed or very low-income. In reality, many workers in service, retail, healthcare support, and gig economy jobs earn wages that fall within Medicaid's income thresholds, especially in states that expanded coverage under the Affordable Care Act.
This guide explains the income rules, household size limits, state-by-state differences, and how to apply if you think you may qualify.
How Income Rules Work for Employed Adults
Medicaid uses your Modified Adjusted Gross Income (MAGI) to determine eligibility. MAGI-based rules apply to most adults under 65 who are not on Medicare. This includes wages, salary, self-employment income, tips, and most other earned income.
Your gross wages before taxes are what gets counted, not your take-home pay. If you earn $18 per hour working 40 hours per week, your annual income is roughly $37,440. Whether that qualifies you depends on your state and household size.
Having employer-sponsored health insurance through your job does not automatically make you ineligible for Medicaid. However, if your employer offers coverage that meets minimum value and affordability standards, you generally cannot use that employer plan and Medicaid at the same time for the same benefits. In many cases, low-wage workers are offered plans they technically cannot afford, and Medicaid fills that gap.
2026 Medicaid Income Limits: Expansion States
As of 2026, 40 states and Washington, D.C. have expanded Medicaid under the ACA. In expansion states, most adults ages 19 to 64 qualify if their income is at or below 138% of the Federal Poverty Level (FPL).
The 2026 FPL figures are set by the U.S. Department of Health and Human Services. Here are the income limits at 138% FPL for the 48 contiguous states and D.C.:
| Household Size | Annual Income Limit | Monthly Income Limit |
|---|
| 1 person | $22,025 | $1,835 |
| 2 people | $29,863 | $2,489 |
| 3 people | $37,702 | $3,142 |
| 4 people | $45,540 | $3,795 |
| 5 people | $53,378 | $4,448 |
| 6 people | $61,217 | $5,101 |
| 7 people | $69,055 | $5,755 |
| 8 people | $76,894 | $6,408 |
| Each additional person | +$7,838 | +$653 |
Alaska and Hawaii have higher limits due to their elevated cost of living. If you live in one of those states, the dollar thresholds above are higher.
These limits apply to the household as a whole. If you file taxes jointly with a spouse, both incomes are counted. Children and dependents are included in the household size but their income is generally not counted for adult eligibility purposes.
2026 Medicaid Income Limits: Non-Expansion States
Ten states have not expanded Medicaid: Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. In these states, adults without dependent children have very limited or no Medicaid coverage regardless of income.
In non-expansion states, the main categories that qualify adults are:
- Parents and caretaker relatives with dependent children, often at very low income thresholds (some states as low as 13% to 20% FPL for parents)
- Pregnant women, typically at 138% to 200% FPL or higher
- Adults with qualifying disabilities
- Adults age 65 and older (linked to Medicare Savings Programs)
If you are a working adult without children in a non-expansion state, you may not qualify for Medicaid even at a low wage. In that case, the ACA marketplace is likely your best option, and subsidies are available for incomes between 100% and 400% FPL. Check your eligibility at coveredusa.org/screener.
Common Work Situations and Medicaid Eligibility
Hourly workers with no employer insurance. Retail, food service, and similar jobs often do not offer health benefits. If your wages fall within your state's limit, you likely qualify for Medicaid. Many workers in these roles qualify without realizing it.
Part-time workers. Part-time employees are more likely to qualify because lower hours mean lower annual income. A worker earning $16/hour at 25 hours per week earns $20,800 per year, which is near or below the 138% FPL threshold for a single adult in many states.
Gig and freelance workers. Self-employment income counts, but so do deductible business expenses. A freelancer with $35,000 in revenue and $10,000 in business expenses has MAGI of $25,000, which may still fall within the limit for a household of two.
Workers who recently started a job. If you start a new job and your employer's plan does not start right away, or if you are in a waiting period, you may be eligible for Medicaid during that gap. Some states process applications quickly enough to provide bridge coverage.
Workers with employer insurance they cannot afford. Medicaid does not automatically consider employer coverage as disqualifying. If the premiums for your employer plan would exceed a certain percentage of your household income, you may still qualify for Medicaid or ACA subsidies. This gets complicated and depends heavily on state rules.
The 2026 Medicaid Work Requirements Update
A key development in 2026 is the rollout of Medicaid work requirements in some states. The federal government authorized states to implement work activity requirements for certain Medicaid enrollees. However, if you are already employed, these requirements do not affect you.
The requirement generally applies to non-disabled adults between 19 and 64 in the expansion population who are not working. The threshold is typically 80 hours per month of employment, job training, education, community service, or a combination.
States moving to implement work requirements in 2026 include Nebraska (starting May 2026), Montana (July 2026), and Iowa (December 2026). More states may follow. If you are employed and your income qualifies, work requirements are not an obstacle to your enrollment.
What Does Not Affect Your Medicaid Eligibility
Several common misconceptions lead people to assume they do not qualify:
Job title or occupation. Medicaid does not care what you do for a living. A restaurant manager earning $22,000 per year with no employer insurance qualifies in the same way as anyone else at that income.
Whether you got a raise recently. If your income went up, report it, but a modest raise may still keep you within the limit depending on your household size. Run the numbers before assuming you lost eligibility.
Your assets. For most working-age adults under 65 using MAGI-based Medicaid, there is no asset test. You can own a car, a home, or have savings in a bank account and still qualify as long as your income is within the limit. Asset limits only apply to certain elderly and disabled Medicaid categories.
Whether your employer offers health insurance. Having access to employer coverage does not automatically disqualify you from Medicaid. However, if you are enrolled in an employer plan, Medicaid may act as secondary coverage in some cases, depending on your state.
How to Apply for Medicaid While Working
Applying is straightforward, and you do not need to stop working or reduce your hours.
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Gather your documents. You will need proof of income (recent pay stubs or a tax return), Social Security numbers for household members, and proof of state residency such as a utility bill or lease.
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Go to your state's Medicaid agency or HealthCare.gov. In most states, you can apply online, by phone, or in person. HealthCare.gov routes you to your state Medicaid office automatically if your income appears to qualify.
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Report your household size accurately. Include everyone you claim on your taxes and anyone who lives with you and shares expenses, even if they are not related to you.
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Report income for all sources. This means wages from your primary job, any side work, freelance income, rental income, and any other regular income. Leave out things like child support received (in most states) and Supplemental Security Income (SSI) if you receive it separately.
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Submit and wait for a determination. Most states process standard Medicaid applications within 45 days. If you are applying based on pregnancy or disability, processing timelines differ. Some states approve applications within days through automated systems.
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Use CoveredUSA to pre-screen. Before applying, you can check your eligibility in about 2 minutes at coveredusa.org/screener. The screener considers your state, income, household size, and other factors to estimate which programs you likely qualify for before you go through a full application.
Medicaid vs. ACA Marketplace: Which One Applies to You?
If your income falls below your state's Medicaid limit, Medicaid is almost always the better option. It typically has no monthly premium, no deductible, and minimal cost-sharing.
If your income exceeds the Medicaid limit, the ACA marketplace may offer subsidized plans. Here is a quick breakdown:
| Income Range (% FPL) | Likely Best Option |
|---|
| Under 138% FPL (expansion states) | Medicaid |
| Under 100% FPL (non-expansion states) | Check state options or ACA |
| 100% to 400% FPL | ACA marketplace with subsidies |
| Over 400% FPL | ACA marketplace or employer coverage |
If you earn just above the Medicaid limit, you may qualify for an ACA plan with a very low premium. The two programs are designed to work together so there is no cliff where you are suddenly left with nothing.
For a full comparison of eligibility thresholds, see our Medicaid income limits reference page.
Frequently Asked Questions
Can I get Medicaid if I work full-time?
Yes. Medicaid eligibility is based on income, not how many hours you work. If your annual earnings fall within your state's income limit, you qualify regardless of whether you work full-time, part-time, or multiple jobs.
Does my employer's health insurance affect my Medicaid eligibility?
Having access to employer coverage does not automatically disqualify you from Medicaid. However, most people cannot use Medicaid and employer insurance simultaneously for the same services. If your employer's coverage is considered affordable under ACA standards, you may be directed toward that plan instead. If the employer plan is too expensive, Medicaid or ACA subsidies may still be available.
What income is counted for Medicaid if I am employed?
Medicaid uses Modified Adjusted Gross Income (MAGI), which includes wages, salary, tips, self-employment income after business deductions, and most other earned income. It does not count SSI payments, child support received (in most states), or certain veterans' benefits.
Can I lose Medicaid if I get a raise?
Possibly. If a raise pushes your household income above your state's limit, you would need to report the change and could lose Medicaid eligibility. However, you would then likely qualify for an ACA marketplace plan with subsidies, so you would not be left uninsured. Report income changes within 30 days in most states.
Do I have to report my employer's offer of health insurance to Medicaid?
In many states, yes. When you apply or renew, you may be asked whether you have access to employer-sponsored insurance. Accurately reporting this affects how your eligibility is determined and whether Medicaid acts as primary or secondary coverage.
What if I work in a non-expansion state and have no kids?
Non-expansion states offer very limited Medicaid for working adults without dependent children. If you do not have children and are not pregnant or disabled, you likely will not qualify for traditional Medicaid in these ten states. The ACA marketplace with income-based subsidies is typically the best alternative.
Do I have to prove I am working to get Medicaid?
Currently, most states do not require proof of employment to receive Medicaid. However, as work requirement policies roll out in 2026 and 2027, some states will require documentation of work activity for non-elderly non-disabled adults who are not already employed. If you are employed, your pay stubs typically serve as documentation.
How long does it take to get approved for Medicaid as a working adult?
Processing times vary by state. Many states use automated systems that can approve applications within a few days for straightforward cases. The federal maximum is 45 days for most applicants and 90 days for disability-based applications.
Working does not disqualify you from Medicaid. Income is what matters, and millions of employed adults across the country receive Medicaid coverage. Check your eligibility now at CoveredUSA, it takes 2 minutes.
Check your eligibility at CoveredUSA
