Yes, what's wrong is cut-off thresholds (or just phaseouts that, when totalled across programs, exceed $1 lost benefits for each $1 of additional income.) It's one of the things motivating UBI, since then all the phaseout happens in one place, by way of progressive marginal tax rates.
It's the same argument to raise minimum wage that'll apply to increasing UBI. I don't see it being the correct avenue to have long-standing progress.
UBI is addressing the root of the issue I pointed to, with healthcare specifically, though, for the same avoiding thresholding reason that UBI serves for aid generally, public baseline healthcare should be universal and not income qualified.
If you make 20k a year, and the cutoff for benefits is 22k, the second you make $22,001 you lose all benefits and are left to fend for yourself.
There should be a better sliding scale to assist those who do want to better themselves without de-incentivizing them to do better because of the fear of losing everything.
Something's very wrong when making more money makes you poorer and less healthy.