Posted by The 2025 budget reconciliation bill (One Big Beautiful Bill Act) requires states to mandate that able-bodied adults aged 19-64 participate in 80 hours per month of paid work, community service, or job training to keep their coverage. If you are on Medicaid, you have probably been getting notifications about the upcoming change that is scheduled to take effect on January 1, 2027. The income limit to qualify for Medicaid is $22,025 / year for a household of 1. But that can vary depending on your state. In 10 states, non-disabled adults without dependents generally do not qualify at any income level.
For me, qualifying for Medicaid is what allowed me start early retirement and explore the world of self-employment. Under the new rules, self-employment can qualify for the work requirement. But you have to earn at least $580 per month, which is the current minimum wage. If you can’t meet the earnings requirement, it is unclear if logging your time will qualify. It may come down to how your state decides to implement the new requirements. At this time, they have not provided enough detail about self-employment reporting.
Even though I work at least 80 hours per month as an Ebay reseller, I’m anticipating that I will lose my health benefits because I don’t earn $580 per month. In fact, I have never earned that much in an entire year. I usually only get to keep 36% of the gross because of shipping and selling fees. In order to net $580 per month, I would need to gross over $1600 per month. This would require a lot more than 80 hours per month, which would not be worth the effort just to qualify for health insurance. I have two choices; either go without health insurance until I turn 65 or find a high-deductible health plan that I can afford. Luckly on January 1st, I will only need to have coverage for nine months. After that, I will be on Medicare. Others, who are younger than me with health issues that limit their ability to travel and work, will be seriously affected by this change.