Qualifying for Medicaid is quite challenging. Persons seeking eligibility for the same can qualify through a number of methods. Unfortunately, there are various problems associated with qualifying for such programs. Medicaid has stringent resource and income limitations. Limited funding has caused a low availability of waiver ‘slots’ accessible. The answer to ‘Will lawsuit settlements affect Medicaid qualification?‘ is yes.
Often times people who are looking to become eligible for these programs have to undergo administrative appeals. These appeals are quite time consuming and stressful. For individuals who have a lawsuit settlement, the process is more challenging. Medicaid mainly looks at the resources and assets available to an individual to discern whether the resources are countable. Resources are considered to be available when the applicant can use the assets for maintenance and support. The money people receive from their settlement may or may not affect their government benefits. Medicaid is a program that could be affected depending on several factors.
Individuals receiving Supplemental Security Income (SSI) are likely to receive Medicaid benefits. SSI is classified as a means tested program. If any changes occur in assets or income of people receiving it, their SSI benefits are likely to be affected. Normally Medicaid benefits are dependent on people’s SSI eligibility. Simply said, if an individual is receiving SSI and they lose their eligibility, they would in turn lose their Medicaid eligibility. People with Medicaid who will receive a settlement, should know how lawsuit settlements can affect Medicaid qualification.
The first step would be reporting the receipt of the money to the SSI program. This must be done within 10 days of receiving the settlement. After reporting, it would be advisable to contact or consult a reputable service to handle the matter. Medicaid considers assets or money from a lawsuit settlement to be income for the month it was received. Individuals who receive money or assets from a lawsuit, and the money or assets are more than their Medicaid benefits are likely to lose their Medicaid benefit for that month. If the money from a lawsuit is paid on a monthly basis, then if the amount paid is more than their Medicaid benefit, they are likely to lose their benefit for the months they will receive payment from a lawsuit settlement.
Lawsuit settlements affect Medicaid qualification one way or another. To get the best advice and options, people on Medicaid who will receive a lawsuit settlement, should seek professional assistance. Engaging services such as Felinton’s service is the best place to start.