HHS announces final rule on Medicaid expansion

The U.S. Department of Health and Human Services on Friday issued a final rule, effective in 2014, that will create a minimum income-based eligibility standard for each state’s Medicaid program.

The rule implements provisions of the Affordable Care Act that terminated several eligibility categories for Medicaid in favor of an income-based standard of 133 percent of the federal poverty level. That rate is currently $14,856 for an individual and $30,656 for a family of four. The law's provisions allow states to raise the eligibility to 138 percent of the federal poverty level.

These changes will become effective in 2014 when Affordable Insurance Exchanges begin operation, according to HHS. The federal government will pay 100 percent of the cost of the Medicaid expansion for the first three years and at least 90 percent after that.