Covered California Certified Enroller Practice Exam

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What does MAGI stand for in the context of health care?

Modified Adjusted Gross Income
Maximum Annual Gross Income
Minimum Adjusted Gross Income
Major Adjusted Gross Income

The correct answer is: Modified Adjusted Gross Income

In the context of health care, MAGI stands for Modified Adjusted Gross Income. This term is crucial for determining eligibility for various assistance programs, including those under the Affordable Care Act, such as Medi-Cal and premium tax credits for health insurance through Covered California. MAGI takes into account the Adjusted Gross Income (AGI) from the taxpayer's income tax return and adds back certain deductions, resulting in a modified figure that can impact eligibility. Understanding MAGI is essential for enrollers as it influences not only individual eligibility for financial assistance but also how subsidy amounts are calculated for applicants seeking coverage. The other options do not correctly define MAGI as they refer to different concepts or incorrect interpretations of income assessment related to health care coverage.