Income and Resources

Income

Income: a person who is working and disabled must meet two separate income tests. One is an earnings test and the other is for all other income other than earnings (unearned income).

Earnings: the earnings limit is set at 250% of the federal poverty level.

Unearned: if the disabled worker (or spouse) receives income that is not “earned,” it is treated as unearned income with an income limit set at 135% of the poverty level. This includes income such as disability benefits, pensions, workers’ compensation benefits, interest/dividends, etc.

Resources These are assets or what a person owns. The resource limit for the Working Disabled Program is higher than for other Medicaid groups; $24,000 per individual and $26,000 per couple. Certain types of resources are not counted toward the resource limit:

Home property,

Certain property that produces income,

Up to two vehicles,

Household goods,

Personal property up to $5,000,

Life insurance up to $10,000 in face value,

Burial funds up to $6,000 if kept in a revocable form.

Resources that count include money in the bank; the value of stocks, bonds or other investment accounts; the value of non- home property that does not produce in come.

Premiums Working Disabled individuals earning less than 150% of the poverty level for an individual or couple do not pay a monthly premium. For Working Disabled individuals/couples who earn more, the premium is equal to 5% of the amount Medicaid considers to be “countable” earnings. Countable earnings are less than ½ of the gross earned income amount x 5%.