About Medicaid

• Medicaid is government-sponsored health insurance available to individuals who can't afford other coverage. To be eligible for Medicaid, you must be a U.S. citizen, and your income must be below the limit set by the program. You must also meet asset limit requirements. Counted assets include bank accounts and real property. However, Medicaid will not include the value of your primary residence when determining your assets.
  
  

Income Guidelines

• Each state sets its own guidelines for determining income and resource limits for Medicaid. You typically qualify for Medicaid if your family's income is close to or less than the federal poverty level. This level is subject to change and is usually higher for households with more members. To determine your eligibility, Medicaid compares your gross monthly income to the state's predetermined limits. It also considers the value of your countable assets and whether you are pregnant or disabled.
  
  

Selling a Home

• When you sell a home, you may become ineligible for Medicaid. Though Medicaid doesn't consider your primary residence to be a countable asset, it does count the proceeds of the sale. If the profit you make from the sale causes your assets to exceed Medicaid's limit, you will no longer receive benefits. However, if you spend the money from the sale over time, you can reapply for Medicaid once your assets are below the limit.
  
  

Considerations

• To remain eligible for Medicaid after selling your home, you may consider spending the profits to stay below the countable resource limit or transferring the assets to another individual. While Medicaid can't prohibit you from spending your money, you may become ineligible for Medicaid if you transfer funds to someone else. If Medicaid discovers you have transferred assets for less than their fair market value to be eligible for coverage, it may terminate your benefits.