Describe and explain the term coverage gap.

Coverage also known as donut hole is a problem in states that have not expanded Medicaid. It is a gap that shows who is eligible for the Medicaid program.

For states that have not expanded the program, parents who have a median income level of 0% to 41% or an annual income of about $8,905 are covered as shown in the figure above. For states that have expanded the coverage, parents who have an income of 0% to 138% of the poverty level or an annual income of $17,609 are eligible for Medicaid. This is an indication that people earning above the limits provided are not covered.

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