Caring Guidance For More Than 30 Years

Changes In Medicaid

“Income Caps” For Medicaid

On June 1, 2014, Indiana became an “income cap” state. This means that if a nursing home resident or an individual receiving home or assisted living care has income above a special income level (in 2021, the cap is $2,382.00), the Medicaid recipient will be terminated from the Medicaid program unless the recipient has a Qualified Income (“Miller”) trust. Excess income (the income above the $2,382.00) must be diverted into a “Miller” trust account. The funds in the “Miller” trust account will be used to pay medical bills and other expenses specified by the state.

Our office is committed to assisting Medicaid applicants and recipients with the creation and maintenance of Miller Trusts.

Changes In Resource Rules

The asset limit for a single Medicaid applicant/recipient is $2,000.00 and the limit for a married couple is $3,000.00. There are special rules for a spouse who is institutionalized or receiving Medicaid “waiver” services (such as care in an assisted living facility or home care) and who has a spouse at home.   IRAs or other retirement funds owned by the non-Medicaid spouse are exempt.  This means that these assets are not included for purposes of the Medicaid eligibility determination.

Automatic In Some Cases

Persons who are eligible for the Supplemental Security Income (SSI) program are automatically eligible for Medicaid. Please note that SSI is quite different from Social Security Disability Income (SSDI). Persons receiving Social Security Disability Income are not automatically eligible for Medicaid under the new rules and still have to pass the Medicaid income and resources tests. However, Medicaid will accept either the SSI or SSDI disability determination as proof of an individual’s disability for Medicaid.