How to Lose Medicaid Coverage

Medicaid is the federally funded health insurance program offered to low-income individuals. Although the government outlines the guidelines, each state has specific requirements regarding eligibility. Apply for Medicaid coverage by visiting your state Medicaid website or contacting your local department of social services. You will need to supply personal and financial information along with proof of identification for all household members. Applying and receiving benefits is simple. On the other hand, losing Medicaid benefits is just as simple.

Instructions

1. Earn too much. Since Medicaid is only available to people who receive a limited income, earning too much money is a way to lose Medicaid coverage. Income requirements vary from state to state. Usually recipients must be between 100 and 200 percent of the federal poverty level depending on your eligibility group.

2. Fall out of a coverage group. Medicaid is available to pregnant women, children, parents or legal guardians of children, disabled and elderly. Once you no longer meet the eligibility requirements for your coverage group, you can lose Medicaid. For instance, Medicaid for pregnant women provides coverage for only a short period of time after giving birth. To be eligible as a parent or guardian, your children must be under a certain age to continue receiving benefits.

3. Acquire assets. Receiving assets greater than the threshold amount will result in a loss of coverage. Whether you inherit, win or receive the assets through a settlement, in most cases having more than $2,000 in countable assets will disqualify an individual from Medicaid. Most state Medicaid programs allow you to spend down your countable assets. Consider investing the money in exempt assets, such as a primary residence or vehicle. Personal property including clothing and furniture is also exempt.

4. Fail to report changes. Your state has specific requirements regarding reporting changes in your household. For example, in Florida any change in circumstances must be reported within ten days. Report all income, residency and household changes to your caseworker to avoid losing benefits.

References

• Law Offices of Charles Robinson: Medicaid Changes and Planning Opportunities
• Today's Seniors: How Do You Lose Medicaid Eligiblity?
• Centers for Medicare and Medicaid Services: Overview

Resources

• Centers for Medicare and Medicaid Services: Contacts Database