Medicaid having a cliff, instead of progressive falloff, is a very regressive policy. There's a common misconception that earning too much will bump you over a tax bracket and cost you, but that's actually true for many safety net items in the US.
This is true for many government or government-adjacent organizations, not just safety net ones.
I've often thought that this is because the typical government worker sucks at math and can't be relied upon to do more than a gross comparison between two numbers ("Bob makes more than $x, therefore Bob is ineligible" rather than "Bob makes $1.2*x, therefore Bob only gets 80% of the full amount").
Even the IRS does this, and they're the one government organization you'd expect to be competent at arithmetic.
This might've been necessary triage at one time, but there's no excuse for it today. With decent software, the worker doesn't have to deal with "advanced math" like percentages -- just type Bob's income into a form and the calculation is done automatically.