Which methodology is used to determine income eligibility for Medicaid?

The methodology used to determine income eligibility for Medicaid is MAGI, which stands for Modified Adjusted Gross Income. This approach calculates a household's income by taking the adjusted gross income and making specific modifications. It is utilized because it reflects the income resources available to individuals and families, which is critical in assessing whether they meet the income threshold required for Medicaid eligibility.

MAGI accounts for various factors such as tax filing status and the inclusion of certain types of income, which provides a comprehensive view of financial capability. This methodology was introduced as part of the Affordable Care Act to standardize income eligibility across different programs.

Other options refer to different concepts. For example, the Federal Poverty Level (FPL) is a measure used to determine eligibility for a variety of assistance programs but does not directly account for all household income modifications needed for Medicaid. Qualified Medicare Beneficiary (QMB) and Traditional Health Plan (THP) are specific program designations that do not describe a methodology for income eligibility assessment. Therefore, MAGI is the correct choice as it reflects the actual calculation used for Medicaid income eligibility determinations.