If you have questions about qualifying for Medicaid, here are some asset basics and information on why you should start planning today.
What is Medicaid?
Medicaid is a jointly funded, federal-state health insurance program for low-income people. It provides health coverage to over 72.5 million Americans, including children, pregnant women, parents, seniors, disabled persons, and other people who are eligible to receive federally assisted income maintenance payments.
Medicaid is the single largest source of health coverage in the United States and covers a number of services for free or for a small copayment. These services include:
- Dental care- checkups and cleanings every 6 months, roots canals, X-rays, etc.
- Doctor’s office visits- 14 per year, including health care clinics and emergency room visits or 16 days in of physician care when hospitalized.
- Family planning- birth control pills, IUDs, shots, and sterilization for members over age 21.
- Maternity care
Basic Eligibility
Each state runs several different Medicaid funded programs for different groups of people. Determining your eligibility can be complex, as each state sets different requirements. That said, there are some base level, federal standards that all states must abide by in order to participate in the program. For example, federal law requires all states to cover low income families, qualified pregnant women, qualified children, and individuals receiving Supplemental Security Income.
The primary way Medicaid eligibility is calculated in Alabama is through income and resources. Currently, to qualify for Medicaid through SSI, a person who is either aged, blind, or disabled cannot exceed an income of $753 per month for an individual or $1,123 for a couple.
Additionally, some resource limits apply as well. Resources can be anything such as cash, money in your bank accounts, loans, stocks, bonds, time deposits, mutual funds, real estate, and promissory notes. These resources may not exceed $2,000 per month for an individual or $3,000 per month for a couple.
For pregnant women and children, the income limits are as follows:
- Income after deductions cannot exceed $1,468 per month for a family of 1
- Income after deductions cannot exceed $1,976 per month for a family of 2
- Income after deductions cannot exceed $2,485 per month for a family of 3
- Income after deductions cannot exceed $2,993 per month for a family of 4
For parent and Caretaker relatives, the limits are:
- Income after deductions cannot exceed $181 per month for a family of 1
- Income after deductions cannot exceed $244 per month for a family of 2
- Income after deductions cannot exceed $307 per month for a family of 3
- Income after deductions cannot exceed $369 per month for a family of 4
Why is Medicaid planning important?
Because each state is different, any person who plans to (or thinks they might need to) qualify for Medicaid should start planning early. Planning not only prepares you for long-term care, but will help ensure that you meet the requiremens for your state. Using effective estate planning tools, techniques, and strategies, your Medicaid plan should protect your assets while still ensuring that you will qualify for benefits should you need them in the future.
Due to its complex nature, hiring a seasoned Medicaid attorney to help to navigate the eligibility process is strongly advised. The lawyers at Stanko, Senter & Mitchell are glad to help you through this process today.
