What is Medicaid? How does it differ from Medicare?
Medicare is a government administered health insurance program for older Americans generally over the age of 65. Because it is an entitlement program, anyone can qualify for Medicare regardless of their income or net worth.
Medicaid is a state- and federally-funded program that provides health coverage for low income individuals and families. Each state administers its own Medicaid program. It is “means tested” meaning that it is available only to those who meet certain income and asset tests.
What does Medicaid cover?
Generally, the basic benefits of Medicaid include:
- Hospitalization
- X rays and lab tests
- Family planning
- Physician, nursing, medical surgical and dental services
- Nursing facility services for adults 21 or older
- Home healthcare for people eligible for nursing facility services
- Pediatric and family nurse practitioner services
- Screening, diagnosis, and treatment services for people under 21
Am I eligible for Medicaid?
To qualify for Medicaid in Maryland, you can have no more than $2,500 ($4,000 in DC) of countable assets. Countable assets generally include everything other than your home, your automobile, household furnishings, and other personal effects such as, wedding rings and heirloom jewelry.
Can I qualify for Medicaid by giving away my assets?
Yes, but not without careful planning beforehand. Otherwise the transfer may either disqualify you or subject you to a penalty period before you could become eligible for Medicaid. For example, if you give away assets to someone and then apply for Medicaid within 60 months following the date of transfer, you would be subjected to a period of ineligibility. You should speak with a Medicaid planning lawyer to learn more.