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Medicaid income limits

About Medicaid income limits for singles and married couples

Combined monthly income is a serious thing to consider. When the income from a Medicaid annuity is combined with other sources of income, it may place the applicant over the allowed amount, making them ineligible for Medicaid benefits. There are various Medicaid income limit rules.

Medicaid Income Limits for a Single-how a Qualified Income Trust can make a single eligible for Medicaid

For a single person, that person is not allowed to have more than $2,022 of income each month. This amount includes all income sources, including dividends, interest, social security, pension and wages. At this time, there are 20 states that are called Income Cap States. This means that any resident of one of these states who makes more than this amount would immediately be disqualified from receiving benefits. Unfortunately, many middle-class Americans will fall into this category, making things very difficult. They make too much money, but not enough to pay for their long-term care such as nursing home costs. However, there has been a lawsuit that was filed that changed how families can qualify for Medicaid if they exceed the limit. It is a strategy called Qualified Income Trust. Basically, this is a trust that is set up to pay the nursing home directly, making the individual eligible for Medicaid.

Medicaid spend down states pay for remainder of nursing home costs

The remaining states are called spend-down states. This means that if a person living in these states does not make more money than it costs for care, they will be eligible to receive benefits. Basically, these people would direct all of their income each month to the nursing home and Medicaid would pay what is left over.

Medicaid income limits for married couples

When it comes to married couples, the Medicaid income limit rules are the same. The combined amount of income from the spouse will be used to determine Medicaid eligibility. Keep in mind, income follows the person. So, pension, annuity payments and social security payments will follow the person whose name is on the check. This means that the income belonging to the well spouse will stay with them. Their money can never be used to pay for the cost of a nursing home for the ill spouse.
Medicaid's Minimum Monthly Maintenance Need Allowance
It is possible for the well spouse to keep all of their income because of the Minimum Monthly Maintenance Need Allowance. This is a set amount that will differ in each state. It ranges from $1,750 to $2,739. If the well spouse has an income that is less that this amount, then a portion of the income from the ill spouse can be redirected back to the well spouse. The amount that will be redirected will not exceed the minimum amount of the MMMNA. For example, if the MMMNA is $1750 and the well spouse only has $1,000 of income each month, $750 from the ill spouse's income will be directed to the well spouse.
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