Bye-Bye Medicaid Asset Test (IMPORTANT)

Wordpress Incidental Economist ^ | 13 April 2010 | Austin Frakt

[Lorianne]

The Affordable Care Act (ACA) goes a long way toward simplifying Medicaid eligibility. Go try and figure it out from the legislative language and you’re not likely to believe me. Fortunately, Joy Johnson Wilson, Health Policy Director for the National Conference of State Legislatures, has done the dirty work. In a handy document Wilson summarizes Medicaid and CHIP provisions in the new law and compares them to current law.

In particular, on page 8 Wilson notes that the ACA “[r]equires states to use a net income standard (no asset or resource test, no income disregards) to determine [Medicaid] eligibility.” Yep, you read that right, bye-bye asset test. Hello simple income test. The new federal income eligibility threshold will be 133% of the federal poverty level (effective 1/1/14).

Essentially, the Medicaid expansion under the ACA will broaden Medicaid eligibility for low-income, non-elderly adults without regard to assets. A major exception for that age group are those with incomes above the threshold but with high out-of-pocket medical costs. Such individuals will be required to spend their assets down to the existing asset limit, which varies by state and is typically a few thousand dollars.

There are a few other caveats. Existing rules, including the asset tests, will continue to apply for individuals obtaining Medicaid eligibility through another program (e.g. foster care children, or SSI/SSDI recipients) and the elderly.

Medicaid qualification just got a whole lot easier (or, rather, it will in 2014).

[BobL]

“The asset test is a ridiculous low $2,000 now.”

I agree, that’s way too low. And if they catch you moving funds around, it’s even worse - you won’t even qualify if under $2,000.

[Mike Darancette]

Individuals can be penalized for not doing something but States apparently can’t. :)

Think of it, the Federal Government has been notorious for forcing things down the states' throats by threatening to withhold other goodies. Now that federal practice is in question and the 4 liberals signed on to this. Roberts is good.

[trebb]

Watch what they do with the Death Tax.

What else can they do? Roberts already gave them free rein with his ideation of a "tax them until it kills them" policy.

[ncalburt]

You are correct
The. Radical
Left wanted all 50 states to be forced to have bloated Medicaid programs and high taxes so people and companies could not move to union free and low tax states !
They lost

[Lorianne]

Supreme Court Saved the Near Poor
http://townhall.com/columnists/johncgoodman/2012/07/28/supreme_court_saved_the_near_poor/page/2

http://www.freerepublic.com/focus/f-news/2911732/posts

cross posted for reference with my above article