Many Americans have received or are about to receive a stimulus check from the IRS. While the majority are thankful and rejoicing the assistance, those who receive Medicaid or have a loved one who receives Medicaid benefits to help cover their health care costs are concerned of the impact these stimulus checks might have on their Medicaid eligibility.
The good news is that the stimulus checks will not affect your or your loved ones Medicaid benefits. The stimulus checks are being treated as tax refunds. Tax refunds are not considered income and are exempt as a resource for 12 months for all federal means tested programs, which includes Medicaid, Food Stamps, TANF and SSI benefits.
What does this mean? This means that you don’t have to rush to quickly spend down $1,200 by the end of the month to assure continued Medicaid benefits. The funds can stay in the bank account and be used throughout the next 12 months for the benefit of the Medicaid recipient. The funds can be used to purchase personal needs items, purchase new hearing aids, or other medical equipment that is not covered by Medicare or Medicaid. The funds can be used to take a vacation or maybe purchase an IPad to be able to see loved ones who don’t live close to home.
If you have concerns that you won’t be able to spend down the funds within 12 months, please contact our office at (317) 817-0300 and we can help provide guidance on how to get the maximum benefit out of your stimulus check.