Michigan Medicaid Income Limits

Michigan Medicaid is a health care program for low-income residents. The Michigan Medicaid eligibility guidelines are based on income and assets. The asset limit for a single applicant is $2,000 or less. Countable assets include bank accounts, stocks, IRAs, and mutual funds. However, funeral trusts and Medicaid-approved annuities are not countable. Other non-countable assets include a home and car. In addition, there are other requirements, such as a functional assessment.

Applicants must also meet a minimum net monthly income level. Some group programs have a maximum net monthly income limit, while others use medical bills and other costs to determine eligibility. Typically, the amount that an individual pays toward their care must exceed a deductible.

Current Healthy Michigan beneficiaries are being asked to submit their paperwork so that their eligibility can be reevaluated. If their eligibility is changed, they will be required to switch to a qualified health plan (QHP) subsidized with Medicaid money or complete health behavior requirements to continue coverage. Those who do not comply with these requirements will lose their coverage. According to a House Fiscal Agency estimate, the reevaluation will have a significant impact, costing the state at least $50 million a month.

Countable Assets

Before applying for Michigan Medicaid, it is important to understand the state’s financial and functional requirements. The amount of assets that one has can make a big difference in whether or not they will qualify for benefits. This can be difficult to determine, and a lot of documentation must be gathered. Once this is done, the person can begin preparing their application.

The assets that are countable include bank accounts, retirement savings accounts, investments, real estate, life insurance policies, and IRAs. However, there are some assets that do not count, such as funeral trusts and the home of a spouse. Using a Medicaid spend-down calculator can help individuals calculate how much they would need to liquidate in order to qualify for Michigan Medicaid. However, a person should be cautious about giving away assets. This could violate Medicaid’s look-back rule, and they could be penalized.

Depending on the individual’s needs, they may qualify for different types of Michigan Medicaid programs. These can include Traditional Medicaid (TM) and the Healthy Michigan Plan. Each of these has its own income and asset limits.

The law also requires Medicaid enrollees to work or volunteer for at least 29 hours a week. The requirement applies to Healthy Michigan enrollees who aren’t exempt from it. However, a federal judge blocked the implementation of this work requirement in early March. The state had planned to start it in early April. This ruling was in response to a lawsuit that was filed by the Center for Medicare and Medicaid Services (CMS). The state is now seeking a new waiver from CMS.