Can Medicaid Take Your Retirement Funds If You Apply For Aid?
Find out if Medicaid takes your retirement funds when you apply for aid.
Medicaid is a health program that works under the collection of federal and state governments. Its basic purpose is to cater the health needs of poor Americans who are unable to take care of their needs otherwise. The help is only provided to those people who qualify for Medicaid. The people willing to avail this program are required to file an application with supporting evidences such as their incomes, age, health condition etc. Each state has separate Medicaid laws. Medicaid provides the largest help to the patients of HIV; 90 percent children and 55 percent adults.
Who Qualify For Medicaid
In order to avail the Medicaid healthcare, the applicants need to fall in any of three main groups; elderly citizens, parents and their children and the disabled. If you belong to any of these groups, you need to check whether you fall in any of the specified category. There are more than 25 categories, classified into major groups such as elderly, disabled, expecting women, children and adults with dependent children. Medicaid has its income requirements as well. Since the purpose of this program is to serve those people who have no other way to look after themselves, therefore, people with low incomes are eligible. Medicaid is only available to the residents of United States of America and undocumented immigrants are not entertained.
How do Retirement Funds and Other Sources of Income Affect Medicaid?
Different retirement plans that provide incentives to low and moderate income workers can actually affect their eligibility to receive Medicaid. In order to qualify for Medicaid, applicants need to meet assets and income tests, which happen to be quite stringent. People who do not qualify these tests are not eligible for Medicaid. They may be required to consume their earnings before they can avail benefits of Medicaid. Until the funds are in their possession, they are not be allowed to participate in the Medicaid program. Many people have expressed their concerns about these requirements that discourage saving among those who fall in the lower earning bracket. At the same time, it should be noted that Medicaid does not ‘take’ your retirement funds if you apply for aid. It only disqualifies you for receiving that aid, and that too, if your earnings exceed the limits set forth in the Medicaid Program.
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