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Homeownership and Medicaid: Balancing Benefits and Eligibility

Medicaid and homeownership, Medicaid is a federal-state assistance program meant to serve the less privileged people of average age. It covers the medical expenses of the beneficiaries. However, the benefactors may be required to cover some expenses at some time. The program covers many Americans such as the elderly, pregnant women, children, low-income earners as well as people living with disabilities.

The program is carried out by the states as per federal requirements. Additionally, is jointly funded by the federal government and the states. All states in the United States of America provide a detailed data analysis every month. Additionally, they provide data about Children’s Health Insurance Programs (CHIP) enrollment activity and eligibility every month.

Can You Buy A House While On Medicaid? An Explanation

Medicaid and homeownership

Bearing in mind that Medicaid is an assistance program to help the less privileged, the thought of buying a house is almost dismissed. Low-income earners struggle daily to cater to their basic needs such as food and clothing. The thought of owning a house is basically not an option.

That said, if you own a property such as a house, you are not qualified for Medicaid. Medicaid and homeownership is considered so as you already own valuable property. The program is to help the poor and since you have the capacity to buy a house, you are not poor.

However, after you surpass the poverty level, a homeownership opportunity can happen. With this, you can try taking advantage of government mortgage assistance. There are programs based to assist low-income earners to own a house or a home for that matter.

The programs give assistance with deposits and that comes with lower interest rates. Additionally, as long as you have a lower income, the program assists with closing costs.

Will Buying A House Affect The Medicaid Program?

Many people have this question in mind and it is always hard to find answers. However, buying a house will directly affect your Medicaid program. Fortunately, you can buy a house while still on Medicaid. If your credit score is fine enough to get a mortgage, you will be able to purchase a house. This will not interfere with your Medicaid program. Additionally, if you are on Supplemental Security Income (SSI), you definitely qualify to purchase a house of your own.

What is Supplemental Security Income: Supplemental Security  Income is a supplemental Federal income program that is financed by general tax revenues and not Social Security taxes.  The program is meant for helping people living with disabilities as well as the aged with little or no income at all. Additionally, the program provided funds to meet the basic needs of these people such as food, clothing, and shelter.

Can A Home Owner Qualify For Medicaid?

Most people in the states ask themselves this question. How can one own property and qualify for the Medicaid program? The basic rule is that people who qualify for Medicaid are those who hold assets not exceeding $200000. The answer to this question is yes.

Medicaid and homeownership qualify for Medicaid even though you are a homeowner. In some states like Florida, any applicant who owns a house or home with an equity value of less than $595,000 is eligible for Medicaid.  

A primary house can be a mobile home, townhome, or single-family residence. The residence may be jointly owned by a couple or with someone else. Medicaid will ignore your resource if you meet the criteria. However, there are exemptions to qualifying for the Medicaid program.

They include:

  •         Trade property or a business
  •         Life insurance
  •         Specific retirement accounts
  •         A vehicle with specific provisions
  •         A burial expense cover of $2500
  •         A house or homestead with specified qualifications

After qualifying for Medicaid, the primary home will be annually ignored in the review as long as you live in the house. However, selling, gifting, or transferring the house to another person while still eligible for Medicaid is restricted. There are rules that prevent exceeding the resource limit. The above restrictions will lead to an exemption to resources available for Medicaid.

How Will Selling  A House Affect Medicaid Program?

Selling your residence can directly lead to disqualification from your Medicaid program. This will happen if the sales profit exceeds your state’s Medicaid asset threshold.

However, you might not be exempted from Medicaid program benefits if your total countable assets stay below your state’s threshold. Primary houses are considered exempt assets.

This makes buying a new residence an option. Additionally, selling assets such as the house to pay your bills is allowed. You cant be exempted from Medicaid benefit programs if you sell your assets to settle debts such as medical bills, mortgage, or car payments.

Differences between Medicaid and Medicare

Medicaid and homeownership

Medicare: Medicare is a voluntary insurance program whereby the medical bills are catered for from the trust funds of the beneficiaries. The insurance primarily covers people above the age of 65 regardless of their income.

Additionally, it covers dialysis patients as well as younger disabled people. Patients are required to partially pay the bills through other means as well as deductibles for hospitals. 

Medicaid and homeownership the insurance program requires the beneficiaries to pay small monthly premiums for non-hospital coverage. The medicare insurance program is run by an agency of the federal government, the Centers for Medicare & Medicaid Services. It applies to all the states of the United States of America in the same way.

Medicaid: Medicaid unlike medicare is an assistance program. The program serves people of every age who has low incomes. The assistance program covers all the medical expenses, unlike medicare where the benefactors partially pay some expenses.

The program is a federal-state program that varies from state to state. Additionally, unlike Medicare, Medicaid is run by local and state governments within the regulations of the federal government.

Spend-Down Assets

If you are at risk of losing Medicaid benefits there is always a solution. If your assets exceed the threshold limit, spending down your assets below the limit is an option. With this, no one will disqualify you. No penalty will come along by using eligible expenses to spend down your assets. Bring your assets below the asset limit and reapply for Medicaid coverage.

Some of the eligible spend-down options are by paying your mortgage debt, credit cards, and medical bills, among others. Additionally, buying a new house is another option to spend down on your assets. All you have to do is maintain your assets below the threshold limits.

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