As the IRS begins sending payments under the CARES (Coronavirus Aid, Relief, and Economic Security) Act, recipients of long-term care medical assistance (i.e. Medicaid or Family Care) are wondering how this payment may affect their benefits. In other words, will the payment be considered income or an asset that causes medical assistance eligibility issues?
If the payment is considered income, there would be little or no impact on Medicaid benefits because the basic rule of Medicaid is that the income, less certain deductions, must be paid at home. pension (called patient responsibility). Therefore, the stimulus payment may impact patient liability, increasing the amount the nursing home would receive that month, but medical assistance benefits would remain unaffected.
However, if the payment is considered an asset, medical assistance benefits could be affected if the payment causes the beneficiary to exceed $2,000 in assets.
So, is payment an asset?
Unfortunately, there is currently no guidance from the Wisconsin Department of Health Services on how payments will be categorized. However, the commissioner of the Social Security Administration (ASS) clarified how the SSA will consider stimulus payments for Supplemental Security Assurance (SSI) recipients. Because Wisconsin follows SSI rules to administer its Medicaid program and Wisconsin’s requirements cannot be more stringent than SSA’s requirements, we can rely on the SSA’s clarification to determine how payment will be made. class.
SSA will not consider payments as income. This means that a recipient of Medical Assistance will not have their share of costs adjusted due to the payment. SSA will consider payments as an asset. However, the payments will be excluded for 12 months, which means the payment will not count against the Medical Assistance recipient’s $2,000 assets. However, once the 12 months have passed, any remaining money would then be considered an asset.