Good health is important to everyone, but with skyrocketing medical costs and a slumping economy now is harder than ever to pay for good quality Health Care. If you can't afford to pay for medical care right now, Medicaid can help provide the resources necessary to ensure you and your family have a long and healthy life
Medicaid is a state run program for low-income individuals and families. Many groups of people can gain access to Medicaid as long as they meet certain requirements set forth by their State's Medicaid administration. Medicaid requirements can include age, whether or not you are pregnant, disabled, your financial standing or if you are a US citizen.
How Housing Mortgage Could Affect Medicaid Benefits
September 15, 2011
If you are at least 62 years old and partly own your current home (“equity”), you may qualify for a reverse mortgage. A reverse mortgage is a loan that turns equities into money. Homeowners are given the option of getting their benefits as a lump sum or as regular checks.
However, this could conflict with Medicaid qualifications because reverse mortgages are a form of assistance to senior citizens with low-income. Medicaid only allows an applicant to own a certain amount of assets to be eligible for the health insurance program.
Reverse mortgage considered as income
There are local governments that consider the payments you get from your reverse mortgage as income. If you do not spend these payments, they may be considered as assets. This will prevent you from qualifying for Medicaid.
However, taking out your mortgage and keeping your equity in your own home could make you eligible for Medicaid. According to the National Reverse Mortgage Lenders Association, spending most of your reverse mortgage proceeds in the same calendar month will prevent you from losing your Medicaid benefits. This way, your reverse mortgage payments cannot be counted as assets.