Myth: “I earn too much in income to qualify for Home Care Medicaid”
Fact: When one qualifies for Home Care Medicaid, he/she will receive his/her full income every month while on services. The first $1,800 of income received can be kept outright, plus a credit for the applicant pays for supplemental insurance, if any (like AARP, CIGNA).
All the income one earns above $1,800 is considered an income “overage.” This can be Social Security, pension, IRA distribution, 401(k), etc. In NY, you do not need to give up your income overage. Rather, you are able to utilize your entire income overage, by working with the charitable pooled income trust companies, so long as one has the bills to use/utilize the overage towards. Keep in mind for purposes of determining the required minimum distribution of an IRA/401(k) it depends on what county you reside in, as to whether the standard IRS life expectancy table is used or the Medicaid life expectancy table.
Hypothetical: A Medicaid applicant earns $3,800 per month of income (Medicaid counts gross, not net). All that income will come to his/her name. The first 1,800 of that income is able to be kept and spent any way he or she chooses. The overage, which is $2,000 in this example, will get sent each month to a licensed charitable pooled income company. They will take out a nominal fee (max is $200) and the balance remaining, $1,800 in this example, can be used/utilized on any and all bills in the Medicaid recipient’s name. These bills can include rent, mortgage, taxes, credit card, debit card, home repair, gas, electric, additional care, etc. The limitation on bills is that they must directly benefit the Medicaid recipient.
In the event that there are not enough bills to utilize the entire overage in a given month, the balance will carry over for future use, but nothing comes back at death. Thus, it is a use it or lose it during your lifetime.
Bonus Question: Is there a single person who by virtue of earning a lot of income would fail to qualify for Community Medicaid?
Answer: No. There is no such a thing as someone who inherently makes too much income for Community Medicaid, so long as they have bills to utilize that income overage on. Thus, the only person who wouldn’t want to take advantage of the program is someone with substantial income and not enough bills to utilize them on.
GR Homecare is a licensed homecare agency serving Nassau County and the five boroughs. We understand how overwhelming the homecare process can be, and we are here to help you navigate Medicaid enrollment efficiently, guiding you every step of the way. Please note that the information provided above is not intended to be, and should not be considered, legal advice. GR Homecare collaborates closely with experienced elder law attorneys who can offer guidance on all legal matters.
Choosing the right homecare services for your elderly loved one can be challenging, but our compassionate and professional team is dedicated to listening to your concerns and providing the care your loved one deserves. With GR Homecare, your family member will not only receive the highest quality care but also the peace of mind they need.
Many seniors prefer to remain in their own homes, where they feel most comfortable and independent. Staying at home can enhance their sense of well-being and happiness. GR Homecare specializes in delivering comprehensive home health care services that help seniors maintain their independence and dignity. We provide support at every stage of the process. For more information, please contact Brina Ganchrow at 718-998-1999.
