Census Reports Record Low Poverty Rate as Medicaid Cuts Take Effect in 2026
The U.S. Census Bureau reported the official poverty rate fell to 10.2% in 2025, a record low, while median household income rose 2.6% to $87,460. However, the supplemental poverty measure remained flat at 13.1%, and health insurance coverage stayed essentially unchanged at 92.1%. Experts warn the 2026 data will reflect the impact of federal spending cuts enacted in 2025, including major Medicaid reductions and SNAP cuts that are expected to increase uninsurance and poverty. The Congressional Budget Office projects roughly 15 million people will lose health coverage by 2034 due to Medicaid cuts.
State Medicaid agencies and managed care plans should prepare for enrollment declines and increased uncompensated care as federal benefit cuts drive coverage losses starting in 2026.
Finance · Managed Care
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