Maintaining Medicaid Eligbility?

[The 585]

I'm recently unemployed and hope to get approved for Medicaid through my state next month. However, I know very little about it and can't find too much reliable information, so maybe some of you guys can share experiences with me!

1) I should be approved based on my "new" monthly income, which will be very little interest and dividends well below the $1,482 monthly limit. HOWEVER, I do plan to make a one-time $15k roth conversion this calendar year to use up tax-advantaged space... would that need to be reportable and could it throw me off Medicaid? When should I make that conversion?

2) I think I saw somewhere online that you can be dropped from Medicaid if traveling abroad for more than 30 days. Is this true, and if so, how do they know? I may plan to do some overseas travel but have no pre-determined timelines. I'd get short term travel insurance while abroad but I'd like to come back home knowing that my Medicaid will still be active!

Thanks in advance for any and all insight on this!

[lhamo]

You will need to report the Roth conversion amount, but once you are on Medicaid you won't get kicked off unless/until your monthly income exceeds the limit for TWO consecutive months, or if you have the income in the month directly before or during your reapplication.

I am not 100% certain, but I think as long as you maintain residency in the state you applied in you should not be kicked off the program due to travel elsewhere, domestic or international.

If your state has healthcare navigators they should be able to answer both questions with confidence.

[The 585]

You will need to report the Roth conversion amount, but once you are on Medicaid you won't get kicked off unless/until your monthly income exceeds the limit for TWO consecutive months, or if you have the income in the month directly before or during your reapplication.

I am not 100% certain, but I think as long as you maintain residency in the state you applied in you should not be kicked off the program due to travel elsewhere, domestic or international.

If your state has healthcare navigators they should be able to answer both questions with confidence.

Thanks lhamo, didn't know about the two consecutive month rule! Maybe a stupid question, but does Medicaid have the same annual open season like normal healthcare plans? Hoping my late December Roth conversion won't throw off eligibility for 2022 enrollment!

I'll also follow up with the state medicaid office, but plan to maintain residency as the place I'd come back to after traveling. Just wanted to see if any of you guys have personal experience and knowledge regarding this. Thanks again!

[lhamo]

Not sure if every state is the same but here in Washington it seems Medicaid runs in 12 month cycles. So if you sign up in July 2021, you will typically renew in July 2022. Unless you have the two consecutive  months of over the limit income and bump to an ACA plan.  I had to do that a couple of years ago when DS had a high paying tech internship (he was still our tax dependent so his income counted toward our household income). When he lost that income we went back on Apple Health in October but our renewal date is still July.

[Sibley]

Medicaid is a state program. Every state is different. Medicaid eligibility should be relatively easy to find, if not easy to understand. Google your state + Medicaid eligibility. Try to find the official state site. There are commonalities between states, but you should not assume it's the same as another state.

Keep in mind that you are an oddity in the Medicaid space, so most Medicaid recipients aren't going to be making massive contributions to retirement funds, travelling oversees extensively. You may have to dig into the small print on the rules.

[jim555]

I'm recently unemployed and hope to get approved for Medicaid through my state next month. However, I know very little about it and can't find too much reliable information, so maybe some of you guys can share experiences with me!

1) I should be approved based on my "new" monthly income, which will be very little interest and dividends well below the $1,482 monthly limit. HOWEVER, I do plan to make a one-time $15k roth conversion this calendar year to use up tax-advantaged space... would that need to be reportable and could it throw me off Medicaid? When should I make that conversion?

2) I think I saw somewhere online that you can be dropped from Medicaid if traveling abroad for more than 30 days. Is this true, and if so, how do they know? I may plan to do some overseas travel but have no pre-determined timelines. I'd get short term travel insurance while abroad but I'd like to come back home knowing that my Medicaid will still be active!

Thanks in advance for any and all insight on this!

You are in NY, NY does an annual recert, meaning you get it for a year.  You report income changes within 20-30 days, can't remember exactly.  You report the Roth conversion within the time frame.  Next month you report the same old lower number.  The net effect is it doesn't matter since the only thing that matters is the annual recert.  One time lumps are not countable.  I would be careful, if you create a pattern of repeatable income and they audit you they can make the case that those lumps should be annualized. 

[eostache]

I'm on Medicaid, and I want to remain on it.

At this time, during the Pandemic Emergency, if you are on Medicaid you cannot be kicked off it if your income goes above the limits. I'm not sure how long that will last or what the long term implications of that are.