Under the healthcare reform law, states have the option of expanding their Medicaid programs to cover people earning up to 138 percent of the federal poverty level ($15,856 for an individual and $32,499 for a family of four). The federal government will cover most of the cost of the expansion, paying 100 percent of the costs for new Medicaid enrollees through 2016. The amount of support will gradually decrease, but the federal government will still cover 90 percent of the costs in 2020, according to the report.
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