A previous post here reviewed the general requirements that must be met for an individual to be approved for Medicaid. Medicaid planning is important for many people in Kansas City as part of planning financially for their elder years. There are some specific financial requirements that must be met for an individual to be approved for Medicaid. Keep in mind that each state also has specific requirements that must be met, which won’t be covered by this post.
A person applying for Medicaid must have a limited income. Income limits are set by the state. Income includes not just a person’s wages or salary, but also Social Security payments, pensions, interest made on financial accounts, stock and bond dividends and veterans benefits. Food stamps, federal housing assistance, home energy assistance and certain types of earnings may not be included as income for purposes of applying for Medicaid.
Some states may also cover certain special income level groups, which include those individuals who meet the general Medicaid requirements and are in an institution for at least 30 days. There may be other requirements that must be met to fall under the special income level group. In addition, some states allow those who are “medically needy” to apply for Medicaid. These individuals may have a high income, but are able to “spend down” their income in order to apply for Medicaid. There may be other requirements to qualify as medically needy as well, as determined by the individual states.
Applying for Medicaid can be a confusing process. It is important to have a good understanding of all the requirements necessary when applying for Medicaid.
Source: LongTermCare.gov, “Financial Requirements,” Accessed Dec. 14, 2015