Medicaid provides health coverage to millions of low-income Americans. Understanding the program’s eligibility requirements and covered services helps you access these beneficial medical benefits.
What is Medicaid?
Medicaid is a public health insurance program providing medical assistance and long-term care services to eligible low-income families, children, seniors, and people with disabilities. Key facts:
- Jointly funded by state and federal governments.
- Administered by the states within federal guidelines.
- Covers over 70 million Americans.
- Represents largest source of healthcare coverage in the U.S.
- Zero or very low costs for enrollees.
Medicaid ensures healthcare access regardless of ability to pay for vulnerable populations. The program has expanded significantly since its 1965 creation.
Who Qualifies for Medicaid?
Medicaid eligibility is based primarily on income relative to the Federal Poverty Level (FPL), plus being in a qualifying group.
Key Medicaid Eligibility Groups:
- Children – Kids under 19 typically qualify with household income up to 142% of FPL. Older rules may apply in states that have not expanded Medicaid.
- Pregnant Women – Income limits for eligibility often around 200% of FPL.
- Parents and Caretaker Relatives – Thresholds range from about 20% of FPL in non-expansion states to 138% in expansion states.
- Seniors and People with Disabilities – Criteria varies based on things like age, work history, SSI status and FPL.
- Adults without Dependents – The Affordable Care Act expanded Medicaid to cover more non-disabled low-income adults without kids earning up to about 138% of poverty. But 12 states have not adopted expansion.
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Income, residency, immigration status and other criteria also factor into Medicaid qualification review. Beneficiaries must re-apply and confirm eligibility regularly, sometimes as often as every 6 to 12 months.
Medicaid Income Limits
Income eligibility thresholds for Medicaid are based on percentages of the Federal Poverty Level (FPL). Some examples include:
- Pregnant women – 200% of FPL
- Children under 1 – 143% of FPL
- Children 1-5 years – 142% of FPL
- Children 6-18 years – 133% of FPL
- ACA expansion adults – 138% of FPL
- Parents and caretakers – 20%-138% of FPL depending on state
- Disabled individuals – 100% FPL + SSI criteria
FPL guidelines adjust annually and vary by household size. Contact your State Medicaid office to confirm current eligibility standards.
Medicaid Asset Limits
In addition to having income under designated limits, Medicaid applicants must not exceed certain asset thresholds. Exact amounts can vary by state.
Typical Medicaid asset limits:
- Individual – $2,000 to $4,000
- Couple – $3,000 to $6,000
Assets counted when determining Medicaid eligibility include things like:
- Cash
- Bank accounts
- Investments
- Vehicles
- Property
- Other valuables
Applicants may do things like spend down savings leading up to application to get below asset limits in order to qualify for Medicaid.
Medicare and Medicaid Relationship
Medicare provides health coverage primarily for enrollees over age 65 while Medicaid serves low-income populations. The programs intersect for “dual eligibles” who qualify for both.
Ways the programs coordinate:
- Those with enough work credits or a spouse’s work history qualify for premium-free Part A. Medicaid can also provide Part A assistance contingent on certain income/asset limits.
- For low earners, Medicaid may help cover Medicare costs including Part B premiums, deductibles and coinsurance.
- Dually eligible beneficiaries can join special Medicare-Medicaid Plans (MMPs) integrating both benefits.
- Long-term care and other benefits not covered by Medicare may be paid for by Medicaid for those who qualify.
Working disabled individuals transitioning to Medicare at 65 must also understand how coverage coordination changes for those eligible for both programs.
Medicaid Benefits Covered
While benefits can vary by state, Medicaid typically covers a comprehensive set of medical services including:
- Doctor and clinic visits
- Inpatient and outpatient hospital care
- Pregnancy, maternity and newborn care
- Mental health and substance abuse treatment
- Dental and vision benefits for children
- Emergency medical transportation
- Prescription drugs
- Rehabilitative services like physical therapy
- Home healthcare
- Nursing home and long-term care
- Medical equipment and supplies
- Preventive wellness and health screening
Review your state’s Medicaid coverage specifics to understand all included benefits. Some home and community-based waiver programs may provide added services.
Medicaid Managed Care Plan Options
Many states utilize Medicaid Managed Care plans delivered through private insurers. These function similar to insurance plans like HMOs and PPOs.
Benefits include:
- Coordinate all care through a primary care provider.
- More predictable costs with copays vs. coinsurance.
- Improved case management for complex conditions.
- Focus on preventive care and wellness incentives.
Members get to select or are assigned a specific plan but maintain Medicaid eligibility. Managed care aims to improve outcomes and control expenses.
Medicaid Cost Sharing
Since Medicaid serves low-income enrollees, out-of-pocket costs are very limited or zero for members:
- No monthly premiums in most states. A few may have modest premiums on a sliding scale.
- No deductibles or coinsurance. Copays typically $1 – $5 based on service type.
- No copays for things like routine checkups, immunizations, family planning services, and emergency care.
- Maximum annual out-of-pocket spending caps around $100-$250 per individual.
Cost sharing exceptions exist for those under 100% of FPL and pregnant women to limit any financial barriers to routine care.
Applying for Medicaid Coverage
To get Medicaid benefits, individuals must submit applications proving eligibility:
- Apply online via Healthcare.gov, state health insurance exchange, or local Medicaid office website. Can also apply in-person or by mail in some locations.
- Provide documentation verifying identity, state residency, immigration status, income, and assets (if applicable).
- Complete any supplemental paperwork such as release forms needed to verify application details.
- Respond promptly to any additional requests from Medicaid office processing application.
- List social security numbers for all household members seeking coverage.
Once approved, members receive a Medicaid ID card to present when getting medical care. Benefits continue as long as eligibility is maintained.
Keeping Medicaid Coverage
To maintain enrollment once qualified for Medicaid, beneficiaries must:
- Recertify eligibility at scheduled intervals by providing updated income and household details. Frequency varies by state.
- Report any life changes like address, job, income, or family size changes within timeframe defined by program.
- Complete requests for additional information needed to verify continuing eligibility.
- Select managed care plan options when required and keep payments current if state requires modest premiums.
- Seek guidance if receiving requests to renew coverage with issues to avoid losing benefits.
Continuous Medicaid coverage provides ongoing medical care access and protections. Keep your state administrator informed of relevant changes to stay enrolled.
Ways States Can Customize Medicaid
While Medicaid must meet broad federal program regulations, states have flexibility to implement aspects like:
- Setting income and asset eligibility criteria above federal minimums.
- Determining if certain optional benefits like dental or vision coverage will be included for adults.
- Managing applicant eligibility processes.
- Contracting with private insurers to provide Medicaid Managed Care plans.
- Requiring or waiving small monthly premium contributions from beneficiaries.
- Operating the Medicaid program directly or contracting administrative functions to third parties.
- Pursuing waivers like implementing work requirements for enrollees to qualify for coverage.
The Supreme Court has ruled states can opt out of Medicaid expansion under the Affordable Care Act, but loss of federal funding results.
Medicaid Expansion Under the Affordable Care Act
The ACA originally mandated Medicaid expansion to cover all adults under 138% of FPL. But the Supreme Court ruled states could choose whether to adopt expansion. Currently:
- 38 states plus Washington D.C. have adopted Medicaid expansion to extend coverage to low-income adults without dependents.
- 12 states have not expanded Medicaid eligibility under the ACA as of early 2023. This creates a coverage gap for some low earners.
- States can decide later to expand Medicaid to increase eligibility per original ACA criteria.
Expanded Medicaid eligibility up to 138% of FPL improves access and affordability for many low-income adults unable to get subsidized marketplace coverage.
Medicare vs. Medicaid Key Differences
Medicare and Medicaid serve different populations in addressing healthcare needs:
| Medicare | Medicaid |
|---|---|
| Federal health insurance for 65 & older and disabled | Joint federal & state program based on income |
| Must pay Part B premiums | No monthly premium for most |
| Covers based on work credits | Covers based on low income status |
| All get same base benefits | Benefits can vary by state |
| Limited long-term care coverage | Covers nursing home and home health needs |
| Does not cover vision, dental, hearing aids | Often covers vision, dental, hearing services |
While the programs may overlap for some “dual eligibles”, they remain distinct in how eligibility is determined.
Frequently Asked Medicaid Questions
What is the income limit for Medicaid eligibility?
Income thresholds for Medicaid eligibility vary by state and personal factors like age, pregnancy status and disability status. Most states use income up to 138% of Federal Poverty Level for adults and higher percentages for children and pregnant women.
Can I have Medicaid and Medicare at the same time?
Yes, those eligible for both Medicaid and Medicare are referred to as “dually eligible.” In this case Medicare is the primary payer and Medicaid provides assistance with Medicare premiums, deductibles and additional benefits.
Does Medicaid cover prescriptions?
Yes, Medicaid includes prescription drug coverage with small copays of $1-$8 typically charged based on the medication type and cost. Certain high cost specialty drugs may require prior approval.
What if I’m denied Medicaid coverage?
If your Medicaid application is denied, you can file an appeal requesting a review of the decision. Provide additional documentation to support your eligibility and income if requested.
When do I have to renew Medicaid benefits?
Timeframes vary but most states require Medicaid recipients to renew eligibility every 6 to 12 months. You must provide updated income and other details to continue receiving benefits without a coverage gap.
Learning Medicaid program specifics helps eligible Americans access this key source of comprehensive health coverage based on financial need.