Medicaid and Marriage: Understanding the Impact on Affordable Health Coverage

When considering marriage, it is essential to understand how it can affect your healthcare coverage. In this blog, we will delve into the impact of marriage on Medicaid eligibility and explore the implications for couples with varying incomes.

Medicaid and Marriage

Medicaid is a government healthcare program that provides coverage to individuals and families with low incomes. Unlike private health insurance plans, Medicaid does not consider assets when determining eligibility. However, it does take into account household income, which includes the income of both spouses after marriage.

Impact on Medicaid Eligibility

When individuals who are not married qualify for Medicaid based on their own income, marriage can affect their eligibility. This is because household income, rather than individual income, becomes the basis for determining eligibility. Therefore, if one spouse has low income and qualifies for Medicaid, marrying someone with a higher income may result in exceeding the Medicaid income limit and subsequent loss of coverage.

Exceptions to Medicaid Income Limit

In some cases, a married individual may still qualify for Medicaid based on certain exceptions. For example, if the spouse with higher income is blind, disabled, or over 65, the individual with low income may qualify for Medicaid coverage.

Other Considerations

Other factors that may be affected by marriage include:

Tax Implications: Marriage can impact tax liability, which can indirectly affect healthcare coverage.
Healthcare Costs: For couples with vastly different incomes, marrying can lead to an increase in healthcare costs due to the potential loss of Medicaid coverage and the need to purchase private health insurance.
Estate Planning: Marriage can impact estate planning and the distribution of assets in the event of a spouse’s death.

Seeking Professional Advice

It is crucial to seek advice from a licensed insurance agent or other qualified professional when considering how marriage may affect Medicaid eligibility and healthcare coverage. They can provide personalized guidance and assist in exploring coverage options that meet your specific needs.

Family Planning

For couples considering marriage, it is important to have open and honest discussions about their individual circumstances, including income and healthcare coverage. If marriage would result in the loss of Medicaid coverage for one spouse, it is essential to weigh the financial implications and consider alternative health insurance options.