Can You Really Have Savings and Medicaid?

As the cost of health insurance continues to rise, many people are struggling to find affordable coverage. For those who earn too little to qualify for Obamacare subsidies but too much to qualify for Medicaid, the choices can seem limited. Some people may wonder if they can simply forgo health insurance and pay the penalty. However, this is not a wise choice, as the penalty for being uninsured can be quite high.

What Are Medicaid Eligibility Requirements?

Medicaid is a government health insurance program for people with low incomes and limited resources. The eligibility requirements for Medicaid vary from state to state. However, in general, to be eligible for Medicaid, you must meet the following criteria:

Be a citizen or legal resident of the United States
Reside in the state in which you are applying for Medicaid
Meet the income and resource limits set by your state
Not be eligible for other health insurance coverage, such as Medicare or employer-sponsored insurance

What is MAGI and how does it is calculated?

MAGI (Modified Adjusted Gross Income) is a way of calculating your income for the purpose of determining your eligibility for certain government programs, including Medicaid. MAGI is based on your taxable income, plus certain other types of income, such as tax-free interest and non-taxable Social Security benefits. When calculating your MAGI, you can deduct certain expenses, such as student loan interest and alimony payments.

Does Medicaid Count Savings?

In most states, Medicaid does not count savings when determining eligibility. When you apply for Medicaid, you will be asked to provide information about your income and resources. This includes your savings, such as money in the bank and retirement accounts. However, in most cases, your savings will not affect your eligibility for Medicaid.

However, there are some exceptions to this rule. For example, in some states, you may be required to spend down your savings before you can qualify for Medicaid. This means that you may have to use up your savings to pay for medical expenses before you can get Medicaid coverage.

What Should I Do If I Have Savings and Need Medicaid?

If you have savings and need Medicaid, you should apply for Medicaid anyway. In most cases, your savings will not affect your eligibility. However, it is important to be aware of the rules in your state. You can contact your state Medicaid office to learn more about the eligibility requirements in your state.

If you are approved for Medicaid, you will be required to report any changes in your income or resources. This includes changes to your savings. If your savings increase, you may be required to report this change to your Medicaid office. They will determine if your savings affect your eligibility for Medicaid at that time.

Conclusion

If you are struggling to afford health insurance, Medicaid may be an option for you. Even if you have some savings, you should apply for Medicaid. In most cases, your savings will not affect your eligibility.