Beginning January 1, 2014, stipulates that states must use modified adjusted gross income (MAGI) to determine Medicaid (and CHIP as revised by section 2101(d) of the Senate Manager’s Amendment) eligibility for most enrollees, including pregnant women, children, parents and other caretaker relatives, and the new adult group. The MAGI-based income methodologies do not apply to eligibility determinations for certain exempted groups, including elderly and disabled populations. Furthermore provides for the alignment of the MAGI methodology with that used to determine eligibility for subsidies under the Exchange. Such methodology prohibits the use of income or expense disregards, as well as disallows asset or resource tests, for purposes of determining eligibility under a state plan or waiver program. As revised by section 1004(e)(2) of the HCERA, provides for a 5% income disregard, effectively raising the Medicaid eligibility threshold to 138% of the FPL.