Newsweek reports on a problem associated with Social Security that Social Security policymakers probably aren't aware of. The woman in the story had to fight for years for Social Security disability benefits. Finally, she was approved and paid but immediately lost her Medicaid. For SSI purposes, when she received that lump sum of back benefits, she had six months to spend it but there's no six month grace period for purposes of Medicaid. She became ineligible immediately.
There are things you can do to spend this sort of lump sum rapidly that give you lasting improvement in your life while retaining Medicaid or at least minimizing your period of ineligibility. You can pay off debts, repair your home which is probably in disrepair since you've been so poor, you can pay down your mortgage, replace worn out appliances and furniture, purchase new clothes, visit family members you haven't seen in years, etc. Just don't give any of it away! The problem is that most people who receive a large sum of money from Social Security or from some other source, such as an inheritance or personal injury settlement, don't see the problem coming and have no idea how to cope with it when it arrives. Often, they give the money to a relative or friend to hold for them which is much worse that useless.
9 comments:
Wouldn't the person probably have Medicare if it's several years of retro benefits that they received?
2:21, it's unclear to me if this is really SSDI or SSI. It says she was going to get less than $900 a month so it could be SSI, or she might be concurrently eligible for both benefits if her PIA is low and she otherwise qualifies.
Even if it's DI and she's eligible for Medicare, it doesn't cover certain things that Medicaid does.
Correct. Medicare will be primary and $879/mth is low enough for her to get QMB. A big nothing burger from Newsweak.
Maybe so, maybe not. Your onset has to be more than 29 months in the past to qualify for Medicare. And, many claimants end up agreeing to amended later onsets when the ALJs "suggest" them that might put them short of the normal Medicare waiting period.
They can get Medicare retroactively if it’s T2. Otherwise, no.
TO: 2:21 PM,
Being eligible for Medicare and being able to afford it are two different things. When I was first on SSDI I could not afford medicare Part B (Part A was free) and so I went on Medicaid. Later down the road I looked into it again and found that there was a penalty to be paid of 10% for every year you did not buy it. Then I was stuck on Medicaid.
As far as what to do with a LUMP SUM of money? Get an attorney and have it put in a SNT- Special Needs Trust fund is not considered an asset.
@1:34AM,
When you say Medicaid, do you mean actual original Medicaid or ACA extended Medicaid (which helps pay premiums for ACA health plans)? There is a difference.
Depending upon the State where you live, if you are on full regular Medicaid ask the State Medicaid program if they will buy-in for Medicare Part B eligibility. If they will (even for just one month), this will wipe out the premium surcharge permanently and you'd pay the standard Part B premium.
Before you do it, talk to your local SSA office on the process as it differs depending upon if you live in what is referred to by SSA as an "auto accrete" state (where Medicaid eligibility is determined based upon SSI or federally administered supplement payments) or "alert" states (states that retain their own ability to make Medicaid eligibility determinations independently of the federal government).
https://secure.ssa.gov/poms.nsf/lnx/0600815030#e
And, depending upon how close you are to age 65, at age 65 you'll be afforded another opportunity to enroll in Part B again penalty free (they'll actually automatically do it and you'll have to refuse it if you don't want it).
To: 1:34 AM, Thanks for the info. I am on Masshealth Commonhealth and they are paying my Part D because I requested extra help and when they decided I wasn't eligible for standard extra help (Medicare paying it) Mass health started to pay it. I am almost afraid to sign up for Part B not knowing 100% sure that they would pick it up. I wrote them a letter, mailed it, called them and no one seems to know anything and at $500 month (Part B with penalty) it's seems like a big gamble, so I may have to wait till I am 65. The bad part about Medicaid (Masshealth in this case) is that you have to pay it back, if not now then when you are dead, which make it hard to Will anything to family becuase they swoop in and take it.
@249 MassHealth swooping in and getting their money back when you die seems reasonable, much like a reverse mortgage. Heirs shouldn't receive money that was essentially borrowed from the taxpayers.
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