The income limitations for each state may seem fairly black or white, and for a single person they usually are easy to understand. What confuses most people is what happens to income that you have if you end up qualifying for Medicaid. The answer to this depends on if you are single or married.
First, it is important to find out if your state is an Income Cap State. In Income Cap States, if you make a dollar more than the maximum income permitted, you will not qualify for Medicaid. Sadly, in these states the income is not enough to cover the cost of care, leaving the patient without the means to pay for the care they need.
In states without an income cap, you must simply earn less income per month than the cost of the care you need. If you earn less, Medicaid will step in to help offset the costs.
For a single person needing Medicaid, you are allotted a small amount each month that you may keep, on average about $50 per month. The rest of your income goes directly to the nursing home, and Medicaid picks up the remaining balance.
If you are married, in about two-thirds of the states, your spouse will be able to keep a percentage of your income to ensure they can continue to support themselves. This amount varies by state, but is commonly referred to as the Minimum Monthly Maintenance Needs Allowance, or MMMNA.
Things get tricky when dealing with income and qualifying for Medicaid. If you have a spouse or dependent children that rely on you, please consult with a qualified elder law attorney in your state.
