That's so unnecessarily convoluted. If medicaid (which I assumed is tax funded) is available to low/no income citizens, then it doesn't make sense to cut someone off if they are contributing to the system which supported them to get to where they were.

It would make more sense just to raise taxes just enough to be a net profit than if they were to apply for a private insurer. But I suppose that would never happen since the private insurers have their hands in politicians pockets, and moron citizens would complain about higher tax rates, even though it would benefit them financially.