Savings on Medicaid not Medicare
Hello Terry, can you have online over seas savings account if have states medicaid or any CD’s or the build equity if you they say they can terminate your coverage is this true. Thank you
Terry Says
Yes, it’s true that you cannot be on a state Medicaid program and have assets beyond their limits. (foreign assets count since you are required to file the FATCA forms each year designating overseas accounts).
The value of countable assets are added together and counted towards Medicaid’s asset limit. This includes cash, stocks, bonds, investments, bank accounts (credit union, savings, and checking), and real estate in which one does not reside. In Illinois, IRAs (with the exception of tax preferred retirement accounts) are also counted. There are also many assets that are considered exempt (non-countable). Exemptions include personal belongings, household furnishings, an automobile, and generally one’s primary home. Additionally, irrevocable prepaid funeral burial contracts up to $7,719 are exempt, and if funded by a life insurance policy, there is no limit.
In Illinois, for example, the limits were recently raised for 2023.
The asset limit for Medical cases in Illinois will be $17,500 effective 05/12/20231. This applies whether one person or more is in a household. Previously, the non-exempt asset limit for Medicaid eligibility in Illinois was $2,000. However, Illinois has recently increased the non-exempt asset limit for Medicaid eligibility to $17,500.
If you’re talking about long term care coverage, a lot depends on how your home is titled and if you still have a relative living there. Contact your state SHIP office for more help regarding health insurance. Here’s how to find SHIP.
