Countable assets (resources) include cash, stocks, bonds, life insurance policies, investments, credit union, savings, and checking accounts, and real estate in which one does not reside. However, for Medicaid eligibility purposes, there are many assets that are considered exempt (non-countable).
Is a Roth IRA exempt from Medicaid?
If the IRA is not in payout status, the IRA is a non-exempt asset, which means the total amount in the IRA will probably be counted as an asset, affecting your Medicaid eligibility. (Roth IRAs have no required minimum distributions and cannot be put in payout status, but they are usually counted as assets.)
What is the maximum income to qualify for Medicaid in Wisconsin?
Who is eligible for Wisconsin Medicaid?
| Household Size* | Maximum Income Level (Per Year) |
|---|---|
| 1 | $17,131 |
| 2 | $23,169 |
| 3 | $29,207 |
| 4 | $35,245 |
What happens when you spend down assets on Medicaid in Wisconsin?
When spending down assets, it’s important that one does not give away assets or sell them way under market value. This is because in Wisconsin, Medicaid has a “ Look-Back ” period of 5 years that immediately precedes one’s Medicaid application date, and if one violates this rule, a period of Medicaid ineligibility may result.
How does Medicaid recover costs from an estate?
This is possible because Medicaid does’t count assets such as a house or car (these are called noncountable assets). But after the person’s death, the state Medicaid program can try to collect medical costs from the deceased person’s estate. This is called “estate recovery.”
Who is eligible for Medicaid in the state of Wisconsin?
Medicaid is a wide-ranging, jointly funded state and federal health care program for low-income people of all ages, including pregnant women, children, families, disabled individuals, and seniors.
Can a person apply for Medicaid with a life estate?
The primary limitation is based on when you created the life estate. The government does not want to allow a person to give away all their property one day and apply for Medicaid the next day because that would amount to an abuse of the Medicaid system.
