Will A One Time Financial Gift Affect Medicaid?
Get the facts first! One time financial gifts can, and often do, affect Medicaid benefits.
How recipients of Medicaid benefits, who receive a one time financial gift, are affected depends on the type of Medicaid they are receiving, and where they reside. Each Medicaid recipient needs to check with their own state rules on receiving the one time financial gift before they accept it.
State Controlled Medicaid:
The Medicaid program is a Federal program but each state has control of it within their state. Each individual who is receiving Medicaid benefits should be aware of this so they can act accordingly. Interested parties can find the Medicaid applications and other important information at their individual state’s website, through the local social Services, Medicaid office, and other sources on the internet.
Different Types of Medicaid:
There are different types of Medicaid and each one determines how a one time financial gift will affect Medicaid benefits. There is regular Medicaid Insurance for health issues and medications and there is also Medicaid coverage for long term nursing home care.
Regular Medicaid Insurance:
An individual with regular Medicaid is allowed $2,000 in assets, or if married, $3,000. The individual is also allowed to keep their home household assets, vehicle, Life Insurance, burial plot, and a few other things. If a person receive a financial gift of more than that amount, their Medicaid would be suspended until they spent back down to the allowed level.
Long Term Nursing Home Care:
This type of Medicaid is totally opposite. They are also allowed the $2,000 in assets or $3000, if married. They are also allowed a $1500 face value life insurance, burial plot, and $1500 burial fund. The recipient of a one time financial gift is not allowed to spend it. They have to use it on their nursing care expenses.
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