Medicaid - Major Income Change Mid Year
Posted: Thu Aug 18, 2022 3:22 pm
To the esteemed ERE community, I'd like your thoughts on this health insurance/income scenario (asking for a friend):
Taxable income for first half of 2022 was higher than the ACA subsidy limit, due to a real estate deal (does not qualify for primary residence tax exclusion, nor 1031 exchange, etc.). Income starting with July 2022 and beyond is expected to stay under the Medicaid eligibility threshold.
This person is in their late 30s, has rarely used health care services, is feeling well, isn't due for a check up for another year. The current plan is to pay the out of pocket ACA premium in the amount of $271 per month through 2022 (since 2022 income will be in the six-figures on an annual basis), and then move to Medicaid in 2023 since income will be below the income threshold for Medicaid Expansion for all of 2023 and beyond in Semi-ERE phase of life.)
I have read elsewhere that Medicaid eligibility would be based on current monthly income or annual income, depending on which option allows a person to be eligible. This makes sense in terms of the seasonal worker who makes $4000 a month during the summer, but only $16,000 annually, and therefore qualifies on an annual basis. However, it makes less sense for the person who made $100k in 6 months, then dropped down to $800 month in interest and dividends for the rest of the year (and therefore qualifies on an monthly basis?).
I'm not particularly interested in the moral arguments around whether those with savings should be on Medicaid (I know this is addressed elsewhere in the forum). I'm more interested in experiences from those familiar with the program, and whether this scenario would likely qualify for Medicaid and/or if there are reasons to delay applying until 2023.
Taxable income for first half of 2022 was higher than the ACA subsidy limit, due to a real estate deal (does not qualify for primary residence tax exclusion, nor 1031 exchange, etc.). Income starting with July 2022 and beyond is expected to stay under the Medicaid eligibility threshold.
This person is in their late 30s, has rarely used health care services, is feeling well, isn't due for a check up for another year. The current plan is to pay the out of pocket ACA premium in the amount of $271 per month through 2022 (since 2022 income will be in the six-figures on an annual basis), and then move to Medicaid in 2023 since income will be below the income threshold for Medicaid Expansion for all of 2023 and beyond in Semi-ERE phase of life.)
I have read elsewhere that Medicaid eligibility would be based on current monthly income or annual income, depending on which option allows a person to be eligible. This makes sense in terms of the seasonal worker who makes $4000 a month during the summer, but only $16,000 annually, and therefore qualifies on an annual basis. However, it makes less sense for the person who made $100k in 6 months, then dropped down to $800 month in interest and dividends for the rest of the year (and therefore qualifies on an monthly basis?).
I'm not particularly interested in the moral arguments around whether those with savings should be on Medicaid (I know this is addressed elsewhere in the forum). I'm more interested in experiences from those familiar with the program, and whether this scenario would likely qualify for Medicaid and/or if there are reasons to delay applying until 2023.
