Medicaid and Tax Rebate Checks      

Most people who are Medicaid recipients know that their income must stay below a certain level in order for them to maintain their Medicaid eligibility and benefits.  Therefore, they must carefully check their finances so that they do not exceed that amount and lose their benefits.  This is critical, since Medicaid is a lifeline for many who can’t otherwise get health care and need to continue treatment, medicine or both.

There has been a lot of confusion regarding the tax rebate checks that are being distributed right now.  Individuals receiving Medicaid are worried about whether this extra money will count as income and cause them to lose their benefits.

The answer to this is, “No.”  The economic stimulus rebate will not count as income; therefore will not cause individuals to lose their Medicaid, according to South Dakota State University. 

Some Medicaid programs count resources as assets, so it is best to check the information at www.ssa.gov, which is the federal Social Security Administration website.  Some nursing-home waiver and other SSI-related programs count resources as assets, so it is important to check the site to see if any of these situations apply to you.   They could include Disabled Adult Children, Widow/Widower, Grandfathered Children or a few others.  You can get specific information regarding these situations on the site.

If you or someone in your family is part of any of these programs, Medicaid will not count the tax rebate as income during the month the rebate is received or for two months afterward.  That means that this money will not be counted when Medicaid is deciding whether a person is eligible for that month and the two months after the rebate is received.  It is important, however, to note that if the money has not been spent or otherwise disbursed by the fourth month, it will be counted as a resource for the programs listed in the previous paragraph.

If you are a Medicaid recipient, hopefully this clears up the confusion so you can breathe a bit easier now.  If you have further questions, go to www.medicaid.gov or www.ssa.gov for more information.

Entry Filed under: General-Medicaid, State Medicaid Programs