How is the Economic Impact (Stimulus) Payment going to affect Medicaid Eligibility?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a one-time direct payment of $1,200 to individuals earning less than $75,000 per year ($150,000 for couples who file jointly), including Social Security beneficiaries. Individuals earning up to $99,000 ($198,000 for joint filers) will receive smaller checks. Payments are based on either 2018 or 2019 tax returns.  If you did not file income taxes in 2018 or 2019 but are receiving social security, you will automatically receive the check either by direct deposit or in the mail. For those individuals who are not receiving social security and did not file prior tax returns, they will need to file a simple tax return in order to receive the payment.

How will this payment affect individuals receiving Medicaid?

The basic Medicaid rule for nursing home residents is that they must pay all of their income, minus certain deductions, to the nursing home. If the economic impact payment were considered income, it would likely have to go straight to the nursing home. There was also a concern that since Medicaid recipients can only have limited resources, the payment may put them over the resource limit and make them ineligible for benefits.  

In a blog post, the commissioner of the Social Security Administration (SSA) has clarified that the SSA will not consider payments as income for Supplemental Security Insurance (SSI) recipients, and the payments will be excluded from resources for 12 months. Because state Medicaid programs cannot impose eligibility requirements that are stricter than SSI requirements, the payments should not affect Medicaid eligibility by being counted either as income or resources in the month in which they are received. 

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