Hi,
I am trying to piece together the income rules for the new MAGI Medicaid.
According to what I have read, it looks like non-periodic income is either not countable, or only countable in the month received (in the old Medicaid).
NY has two cases of IRA distributions not being counted as income for Medicaid since they were irregular payments and counted as a resource transfer, not income. So, could we conclude that irregular non-periodic events like capital gains (ex. on stock / real estate), IRA Distributions, or Roth Conversions, inheritances, lottery winning, simply have no effect on MAGI Medicaid, or worst case only effects things for the one month received? I am wondering how this would work, tell Medicaid I am doing a Roth Conversion for month X, get private insurance for that month, convert the $40,000, then go back to Medicaid after that?
Any experts have any thoughts on this?
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Old style Medicaid ( Non-MAGI )
Income eligibility for Medicaid is determined on a monthly basis. Because of this,
Medicaid differentiates between periodic income and non-periodic income. Periodic income
is received on a regular schedule, for example, once a month, once a quarter, once a year, etc.
Some examples of periodic income are pensions, annuities, and IRA withdrawals. Non-
periodic income is income received on an irregular schedule such as an inheritance, or an
award.
Non-periodic income is counted in the month in which it becomes available. After that, it
is considered a resource. This means that if the individual were to receive moneys that would
cause his/her income to exceed the cost of his/her care, he/she would be ineligible for Medicaid
for that month only, regardless of whether the money is all spent by the end of the month. For
example, needed care is $5,000/month and a CD matures that, when the CD's interest is
combined with regular monthly income, gives the individual $7,000 that month. In this instance,
the individual would be ineligible for Medicaid in that month but eligible in the following month
even if he/she merely deposits the extra amount.
Periodic income is applied on a monthly basis regardless of how often it is received
during the year. For example, if an annuity paid out once a year, the amount paid would be
divided by twelve (12) to establish total monthly income.
I am trying to piece together the income rules for the new MAGI Medicaid.
According to what I have read, it looks like non-periodic income is either not countable, or only countable in the month received (in the old Medicaid).
NY has two cases of IRA distributions not being counted as income for Medicaid since they were irregular payments and counted as a resource transfer, not income. So, could we conclude that irregular non-periodic events like capital gains (ex. on stock / real estate), IRA Distributions, or Roth Conversions, inheritances, lottery winning, simply have no effect on MAGI Medicaid, or worst case only effects things for the one month received? I am wondering how this would work, tell Medicaid I am doing a Roth Conversion for month X, get private insurance for that month, convert the $40,000, then go back to Medicaid after that?
Any experts have any thoughts on this?
------------------------
Old style Medicaid ( Non-MAGI )
Income eligibility for Medicaid is determined on a monthly basis. Because of this,
Medicaid differentiates between periodic income and non-periodic income. Periodic income
is received on a regular schedule, for example, once a month, once a quarter, once a year, etc.
Some examples of periodic income are pensions, annuities, and IRA withdrawals. Non-
periodic income is income received on an irregular schedule such as an inheritance, or an
award.
Non-periodic income is counted in the month in which it becomes available. After that, it
is considered a resource. This means that if the individual were to receive moneys that would
cause his/her income to exceed the cost of his/her care, he/she would be ineligible for Medicaid
for that month only, regardless of whether the money is all spent by the end of the month. For
example, needed care is $5,000/month and a CD matures that, when the CD's interest is
combined with regular monthly income, gives the individual $7,000 that month. In this instance,
the individual would be ineligible for Medicaid in that month but eligible in the following month
even if he/she merely deposits the extra amount.
Periodic income is applied on a monthly basis regardless of how often it is received
during the year. For example, if an annuity paid out once a year, the amount paid would be
divided by twelve (12) to establish total monthly income.
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