How Much Income Can I Earn and Still Qualify for Medicaid in Florida?

Medicaid can literally be a lifesaver for elderly people in need of long-term care who can’t afford the exorbitant costs of a nursing home, assisted living, or in-home care without draining their life savings and becoming destitute. However, although Medicaid covers the cost of long-term care, the program itself comes with strict earning requirements that limit eligibility to low-income individuals, often shutting out seniors who may have income sources like Social Security benefits, pensions, or part-time work. Thankfully, there are sound legal strategies one can employ to qualify for Medicaid without going broke in the process. Below we discuss the income limits for Medicaid eligibility along with some strategies for people above the limit to qualify for Medicaid and the important benefits it offers. For advice and assistance tailored to your specific needs and circumstances, contact Shalloway & Shalloway, P.A., to speak with an experienced and compassionate West Palm Beach elder law attorney.

Income Limits for Medicaid in Florida

As of 2024, the income limits for Medicaid eligibility in Florida for individuals seeking long-term care services are as follows:

• Individual Income Limit: $2,742 per month
• Married Couple (both spouses applying): $5,484 per month
• Married with One Spouse Applying: The non-applicant spouse is entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA), which is up to $3,715.50 per month.

These income limits apply specifically to those seeking Medicaid for institutional care, such as nursing home services or home and community-based services. It’s essential to remember that these limits can change annually, so staying updated on the latest figures is important.

Income Sources and Medicaid Eligibility

Medicaid considers all sources of income when determining eligibility. This includes:

• Social Security benefits
• Pension payments
• Annuities
• Rental income
• Wages from employment

However, some income sources, such as veterans’ benefits or certain types of trusts, may be partially exempt.

Strategies to Qualify for Medicaid Despite Higher Income

For individuals whose income exceeds the Medicaid limit, legal strategies can help them qualify. One common approach is the establishment of a Qualified Income Trust (QIT), also known as a Miller Trust. Other less desirable options include making use of spousal impoverishment protections or engaging in a thoughtful spend-down strategy.

• Qualified Income Trust (QIT): A QIT allows individuals to qualify for Medicaid by redirecting excess income into a trust. The income deposited into the trust is not counted towards the Medicaid income limit. In a QIT, income is deposited into the trust each month, reducing the applicant’s countable income to below the Medicaid threshold. The funds in the trust are used to pay for the individual’s care and medical expenses. The trust must be irrevocable and managed by a trustee, who could be a family member or an attorney. Any remaining funds in the trust after the Medicaid recipient’s death may be subject to Medicaid estate recovery.
• Spousal Impoverishment Protections: For married couples, Florida’s Medicaid program provides protections to ensure that the non-applicant spouse is not impoverished. These protections allow the non-applicant spouse to retain a portion of the couple’s income and assets.
• Spend-Down: Applicants can spend excess income on medical expenses, reducing their income to meet Medicaid eligibility. This approach requires careful documentation and planning.

Contact Shalloway & Shalloway for a Strategic Approach to Medicaid Eligibility and Planning for Long-Term Care in West Palm Beach

At Shalloway & Shalloway, P.A., we specialize in helping seniors and their families in West Palm Beach plan for Medicaid eligibility and long-term care. Our experienced elder law attorneys can guide you through the Medicaid application process and help you develop a plan tailored to your unique financial situation. Contact us today at 561-686-6200 to learn more about how we can assist you in securing the care you deserve.