Medicaid restrictions regarding cash in the bank

amother

Brown

Wed, Feb 08 2017, 8:36 am

Set up a Paypal account, and transfer the majority of your money over there.

When applying, do not give them a month's statement, only give them a printout of your balance (after removing most of your money). They may insist on 3 to 6 months of statements, or they may not. It depends on who you get as a social worker, and what your other circumstances are.

Once you are approved, you can transfer your money back. They won't check again.

amother

Brown

Wed, Feb 08 2017, 8:55 am

I do not know the OP, but let's assume it's something like this. OP's husband is in kollel. OP has 10 kids bli ayin hara. MIL gave them X number of dollars, and says that the money can only be spent on a downpayment for a house, kid's tuition, new shoes, or whatever.

So, there's money in savings, but they're not supposed to touch it. Meanwhile, one of the kids needs medical assistance. MIL says "don't you dare touch that money. You qualify for Medicaid. That's what the programs are there for." What is OP supposed to do?

amother

Forestgreen

Wed, Feb 08 2017, 9:03 am

Yes there always is a justification for fraud - back to the long thread on ethics.

If a person is elderly, Medicaid does look at assets.

My understanding of the current law is that for a person under 55, Medicaid just looks at income and not assets. It is one of the anomalies of the current system which might have been cured if the Republicans had not been so defiant in their 6 year witch hunt to "destroy" Obamacare - which now (to my great amusement I admit), they find they are not politically able to do because it is overwhelmingly popular. LOL

But there is still something obscene about a "hypothetical" in which a person has $20,000 or $100,000 in the bank or under a mattress and yet feels that rather than spend that money on necessities like medical care or food, they are "entitled" to use that money for a want.

People seem to lose sight of the fact that the money funding Social programs comes from individuals - many of whom are paying huge amounts for their children's medical care and don't have the luxury of deciding whether to "spend" money in the bank for it.

I am a supporter of social welfare nets but this kind of stuff makes me sick. As well as the justifications including that "other" people (generally with darker complexions) are just if not worst in terms of committing fraud on the system.

amother

Teal

Wed, Feb 08 2017, 9:13 am

I have been on medicaid in 2 states, regardless of assets. It is income based. They look at your taxes and paystubs, not bank accounts. Some states have asset requirements and some don't. Same with food stamps - which I don't get - but I happen to know that some states don't even have asset requirements for that.

Back to medicaid - yes, it should be income based, not asset. So if I don't qualify for medicaid bc I have 20k in the bank and then we have to use that to pay for healthcare and it gets used up in about 2 years (yes, realistically!), then I would go on medicaid at that point bc I have no assets and then I won't be able to cover emergencies (a job loss and we have to cover basic living expenses!) when they happen. Having 20k is called an emergency fund - yes, you don't touch it!! No, it is not for private insurance premiums and copays! Someone needs to be able to afford their healthcare out of their regular income, not their savings!

Good luck OP - if you are honest about your income, I hope you can qualify. This is coming from a right wing conservative etc. But with the unaffordable care act making us all miserable, what is wrong with going in medicaid if your truely income qualify?

Laiya

Wed, Feb 08 2017, 9:14 am

amother wrote:

What OP is NOT supposed to do is, engage in criminal activity.

Fyi, whether a particular social worker catches on, is irrelevant. All records are saved. And when you sign the application, you attest to its truth.

Eta. Also a mistake to think that it won't be checked again. Audits can certainly happen, even if years after the application.

Last edited by Laiya on Wed, Feb 08 2017, 9:20 am; edited 1 time in total

MrsDash

Wed, Feb 08 2017, 9:17 am

amother wrote:

So unfair. Why are you or anyone else excluded from the rules? You make other people's honest day work THAT much harder. If you don't qualify, you don't qualify. Even if it's by a single dollar. There are families that are so poverty-struck, they have negative in their bank accounts and struggling every day to survive. Before breaking the law or using these selfish "loopholes," think about those other people who truly need it and don't have the means because people like this who use up the funds that should have been placed elsewhere.

Life is hard and expensive. Health insurance is a heck of a lot of money. That sets even the upper middle class back a several notches. I just can't get over how people rationalize that their needs are more important. As if no one else has suffered.

We don't qualify for these programs, and almost 6 years later, we are still paying off bills for cancer treatments even with health insurance.

MrsDash

Wed, Feb 08 2017, 9:20 am

amother wrote:

Try to justify these actions all you want -- this behavior is deplorable. Selfish.

amother

Teal

Wed, Feb 08 2017, 9:24 am

MrsDash wrote:

Try to justify these actions all you want -- this behavior is deplorable. Selfish.

If there are no asset requirements in her state, then NO it is NOT selfish to apply, if she income qualifies. I do not think she should lie if there are asset requirements. But if she is being honest and following the rules, it is OK to qualify, even with a bank account, if that is allowed.

MrsDash

Wed, Feb 08 2017, 9:28 am

amother wrote:

Oh geez, I was talking about trying to scam your way into the program. If you qualify, you qualify.

Amarante

Wed, Feb 08 2017, 9:29 am

amother wrote:

I think people are reacting to the advice from a poster that someone should transfer assets to hide along with a justification that money in the bank can be used for other purposes.

As far as I know under current law, assets are only relevant for those over 55 who receive Medicaid and this might differ from state to state.

There are lawyers to specialize in hiding the estates of elderly people so that they can qualify for Medicaid rather than use assets which they want to preserve.

At least in California, as far as I know, there is no asset test for Medicaid for those under 55. Your qualification is based solely on income and frankly even if you are just above the Medicaid cutoff most people would qualify for very large credits for premium payments if they buy through an exchange. If one buys the silver plan and has a low enough income, there are subsidies that reduce co-payments and deductibles A LOT. Most people are not aware of this though. So your actual payment for medical care (premiums and actual care) should be affordable - which is what it should be.

amother

Navy

Wed, Feb 08 2017, 9:41 am

op here....I'm actually asking for a friend. The family lives in Brooklyn. Husband and wife both have low paying cash jobs. I'm not sure if they legitimately qualify, I didn't ask. They get help for summer sleep away camps from parents and they deposited several thousand dollars into their bank account. My friend called me last night concerned that they had a lot of money sitting in their account and what the ramifications might be on their medicaid. I don't know what type of medicaid they have.

amother

Silver

Wed, Feb 08 2017, 10:17 am

I applied for food stamps once and was denied because we had ~2100 in our savings account. (Asset limit in my state is 2000.)

I tried explaining I had just received money from a school loan, and it was there for bills. We had to use it to survive and keep a roof over our heads and in just a few months it would be gone.

It didn't matter, we were denied. I had to wait for the balance to run down and apply again.

No, I don't move assets, but I am more careful about the timing of when I apply or renew applications now.

amother

Brown

Wed, Feb 08 2017, 10:58 am

amother wrote:

Yup. I figured it was something like that. There are frum people in Brooklyn who can help you get onto all the programs you need. I don't have any contact numbers, though. I moved out of that area a while ago.