Medicaid (Medical Assistance) Income Issue

Medicaid Medical Assistance Rules About Countable Assets

Medicaid Medical Assistance rules clearly indicate that:

  1. Income is converted at the beginning of the next month to a countable asset.
  2. Applicants can have no more than $2,500 in countable assets.

Applicants whose incomes are deposited at the beginning or middle of the month usually have no issues with these rules. However, applicants whose incomes happen to arrive at the end of the month can be disqualified.

Disqualified Because of End-of-Month Income

Let’s suppose an applicant receives a pension income of $3,000 that arrives on the 30th of each month. In that case, the income hits the account on the last possible day. The first of the month rolls around, and then, by no fault of the applicant, that $3,000 worth of income is now a countable asset. The individual is disqualified from Medical Assistance since the countable assets are over-limit. It seems to be a worse case scenario of never being able to qualify for Medical Assistance. Unfortunately, the Maryland Medical Assistance Manual is not clear on this point.

Administrative Law Judge Ruled for Grace Period

However, this issue was addressed in an administrative law hearing, and the ALJ ruled that income does not automatically convert to an asset as of the first of the month. Rather, income that hits at the end of the month is allowed a grace period before it converts (if unspent) to a countable asset. That opinion is posted here: ALJ Opinon on Income at the End of the Month.