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www.cga.ct.gov/olr OLRequest@cga.ct.gov Connecticut General Assembly Office of Legislative Research Stephanie A. D’Ambrose, Director (860) 240-8400 Room 5300 Legislative Office Building

Public Assistance Program Eligibility and Benefits Cliffs

By: Mary Fitzpatrick, Principal Analyst April 5, 2023 | 2023-R-0100

Issue This report discusses program eligibility when participants’ employment causes their income to exceed program limits in Medicaid, Temporary Family Assistance (TFA), and Supplemental Nutrition Assistance Program (SNAP). It also discusses the Federal Reserve Bank of Atlanta’s “CLIFF Suite” tools that model the ways in which public benefits, taxes, tax credits, and wage increases interact.

Summary Medicaid, TFA, and SNAP provide public assistance to lower income households in Connecticut. Generally, eligibility for the programs is established in state and federal law, but several options may exist for households who begin earning too much income to continue to qualify for benefits.

For Medicaid, income eligibility is established in statute and in the state Medicaid plan and varies depending on coverage group. Medicaid enrollees who begin to earn income higher than the program’s income limit may benefit from (1) Transitional Medical Assistance, which provides a year of Medicaid to HUSKY A recipients with income over the program’s limit; (2) Covered Connecticut, which provides Medicaid-like coverage to people with incomes too high for Medicaid but under 175% of the federal poverty level (FPL); and (3) Med-Connect, the program for working people with disabilities.

For TFA, income limits are established in statute and the Temporary Assistance for Needy Families (TANF) state plan. People already enrolled in TFA are subject to higher income limits than prospective applicants, allowing them to earn more once they have enrolled.