I believe you cannot have assets over a fixed amount to be on medicaid. If you want on this program, these assets must be divested.
Bankruptcy is far preferable to going on Medicaid.
Affordable Care Act of 2010. Estate recovery will be forced on millions of people who might have otherwise gone without insurance. Why? Because the plan is that millions more Americans have health insurance. That would be accomplished by expanding Medicaid and implementing premium assistance (subsidies). When a person is found to be eligible for Medicaid, they will be automatically enrolled into their state's Medicaid program. Those forced into Medicaid will, due to the federal law, also be forced into estate recovery. Their estates will be partly or fully taken over by the federal or state government when they die.
As I found out last night, all but about three of the states have done away with asset tests for Medicaid (I’m talking about for people under 65 — not sure about Medicaid and Medicare dual eligibility for older people). There are no asset questions or limits of any kind for the “new” Medicaid.
Starting Jan 1, 2014, I believe the asset tests for Medicaid will no longer be required.
I was a MediCal eligibility worker many years ago. You are correct. You can have your house........if you live in it. Back then you could only have $2500 in cash, no clue what it is now. And any income beyond a certain point was used against you as a ‘share of cost’. They use a formula.....allows so much for housing, utilities, and support such as food etc. anything over and above that is to be used for medical costs.
Don't worry, they'll divest you of them soon enough, through increased taxes, fees and fines. It's all spelled out in the thousands of new regulations in Obamacare.
"There's no way to rule innocent men. The only power government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws." - Ayn Rand
Obamacare changed that. There is no longer an asset test for Medicaid. You can be a millionaire and get on it if you have low enough income.
As far as the government taking your assets after you die to compensate for Medicaid, I believe that is only if you are on Medicaid from age 55-64. I don’t think there’s any such penalty if you’re younger.