diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6683b673f73..6f0f95b5819 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,3 +16,7 @@
 
 * Broke down TANF eligibility into demographic and financial variables, with financial separated by current enrollment in program
 * Specified demographic TANF eligibility per IL rules
+
+### 0.5.0
+
+* Added Medicaid Tests + Income Threshold Formula for California 
diff --git a/openfisca_us/parameters/hhs/medicaid/income_limit.yaml b/openfisca_us/parameters/hhs/medicaid/income_limit.yaml
new file mode 100644
index 00000000000..3db99c573db
--- /dev/null
+++ b/openfisca_us/parameters/hhs/medicaid/income_limit.yaml
@@ -0,0 +1,19 @@
+description: Medicaid income limit as a percentage of the federal poverty guideline.
+CA:  
+  ADULT_WITHOUT_DEPENDENT:
+    2021-01-01: 1.38
+  ADULT_WITH_DEPENDENT:
+    2021-01-01: 1.38
+  CHILD_AGE_0:
+    2021-01-01: 1.38
+  CHILD_AGE_1_5:
+    2021-01-01: 1.38
+  CHILD_AGE_6_18:
+    2021-01-01: 1.38
+
+metadata:
+  unit: /1
+  reference: 
+    title: California Medicaid Eligibility
+    href: https://www.dhcs.ca.gov/services/medi-cal/Pages/DoYouQualifyForMedi-Cal.aspx
+  period: year
diff --git a/openfisca_us/tests/policy/baseline/hhs/medicaid/medicaid_income_threshold.yaml b/openfisca_us/tests/policy/baseline/hhs/medicaid/medicaid_income_threshold.yaml
new file mode 100644
index 00000000000..6cc00f66662
--- /dev/null
+++ b/openfisca_us/tests/policy/baseline/hhs/medicaid/medicaid_income_threshold.yaml
@@ -0,0 +1,60 @@
+- name: California adult with no dependents
+  period: 2022
+  input:
+    people:
+      person:
+        medicaid_person_type: ADULT_WITHOUT_DEPENDENT
+    households:
+      household:
+        state_code_str: CA
+        members: [person]
+  output:
+    medicaid_income_threshold: 1.38
+- name: California adult with dependents
+  period: 2022
+  input:
+    people:
+      person:
+        medicaid_person_type: ADULT_WITH_DEPENDENT
+    households:
+      household:
+        state_code_str: CA
+        members: [person]
+  output:
+    medicaid_income_threshold: 1.38
+- name: Californian child age 0 
+  period: 2022
+  input:
+    people:
+      person:
+        medicaid_person_type: CHILD_AGE_0
+    households:
+      household:
+        state_code_str: CA
+        members: [person]
+  output:
+    medicaid_income_threshold: 1.38
+- name: California child between 1-5 years of age
+  period: 2022
+  input:
+    people:
+      person:
+        medicaid_person_type: CHILD_AGE_1_5
+    households:
+      household:
+        state_code_str: CA
+        members: [person]
+  output:
+    medicaid_income_threshold: 1.38
+- name: California child between 6-18 years of age
+  period: 2022
+  input:
+    people:
+      person:
+        medicaid_person_type: CHILD_AGE_6_18
+    households:
+      household:
+        state_code_str: CA
+        members: [person]
+  output:
+    medicaid_income_threshold: 1.38
diff --git a/openfisca_us/variables/hhs/medicaid.py b/openfisca_us/variables/hhs/medicaid.py
new file mode 100644
index 00000000000..aa3f60b39ee
--- /dev/null
+++ b/openfisca_us/variables/hhs/medicaid.py
@@ -0,0 +1,33 @@
+from openfisca_us.model_api import *
+
+
+class MedicaidPersonType(Enum):
+    ADULT_WITHOUT_DEPENDENT = "Adult without dependent"
+    ADULT_WITH_DEPENDENT = "Adult with dependent"
+    CHILD_AGE_0 = "Child age 0"
+    CHILD_AGE_1_5 = "Child age 1 to 5"
+    CHILD_AGE_6_18 = "Child age 6 to 18"
+
+
+class medicaid_person_type(Variable):
+    value_type = Enum
+    possible_values = MedicaidPersonType
+    default_value = MedicaidPersonType.ADULT_WITHOUT_DEPENDENT
+    entity = Person
+    definition_period = YEAR
+    label = "Medicaid person type"
+    documentation = "Person type for Medicaid"
+
+
+class medicaid_income_threshold(Variable):
+    value_type = float
+    entity = Person
+    definition_period = YEAR
+    label = "Medicaid FPL threshold"
+    documentation = "Maximum income as a percentage of the federal poverty line to qualify for Medicaid"
+
+    def formula(person, period, parameters):
+        state_code = person.household("state_code_str", period)
+        person_type = person("medicaid_person_type", period)
+        income_threshold = parameters(period).hhs.medicaid.income_limit
+        return income_threshold[state_code][person_type]
diff --git a/setup.py b/setup.py
index b220bb4ca75..7442ff90f2e 100644
--- a/setup.py
+++ b/setup.py
@@ -4,7 +4,7 @@
 
 setup(
     name="OpenFisca-US",
-    version="0.4.0",
+    version="0.5.0",
     author="Nikhil Woodruff",
     author_email="nikhil@policyengine.org",
     classifiers=[