Is Social Security Considered Income for Medicaid in New York?

Social security benefits are counted as income for purposes of Medicaid eligibility. It is not exempt from Medicaid. All types of Social Security benefits, including retirement, disability, and survivor benefits, are considered in Medicaid eligibility calculations. For this reason, the amount of Social Security benefits received can have a significant impact on Medicaid eligibility.

What is Included in Countable Income?

When determining Medicaid eligibility, the entire sum of Social Security benefits received, including both taxable and nontaxable portions, is considered as income. Social Security benefits include retirement, disability and survivor benefits. For instance, if an individual receives Social Security benefits from a deceased spouse or parent, such as widow(er)'s or children's survivor benefits, these are categorized as unearned income in the Medicaid eligibility calculation process. The incorporation of these benefits can significantly impact an individual's qualification for Medicaid coverage.

Supplemental Security Income (SSI)

SSI is a federal program that provides monthly cash payments to individuals with limited income and resources. To be eligible for SSI, an individual must meet certain criteria, such as having a disability, being blind, or being 65 years of age or older. SSI benefits are intended to help recipients meet their basic needs, such as food, clothing, and shelter.

SSI income is not counted towards Medicaid eligibility. Unlike Social Security benefits, Supplemental Security Income (SSI) is not considered as income when determining Medicaid eligibility. SSI benefits are designed to provide financial assistance to low-income individuals and are not counted as a resource for Medicaid purposes. In fact, in most states including New York, individuals who receive SSI benefits are automatically eligible for Medicaid coverage without a separate application process.

Income Not Counted by Medicaid

While most income sources are counted when determining Medicaid eligibility using the Modified Adjusted Gross Income (MAGI) method, there are some exceptions. Certain types of income are excluded from the MAGI calculation, which can help individuals qualify for Medicaid coverage even if they have additional income sources. These excluded income sources are not considered part of an individual's eligible income for Medicaid purposes. It is important to understand which income sources are not counted to accurately assess Medicaid eligibility and potential benefits.

In New York, the following income sources are not counted according to regulations and general principles of Medicaid eligibility:

• Supplemental Security Income (SSI) benefits
• Veterans Affairs (VA) benefits, such as Aid and Attendance benefits (but disability compensation and pension payments are included)
• Supplemental Nutrition Assistance Program (SNAP) benefits, also known as food stamps
• Housing assistance, such as Section 8 vouchers or public housing subsidies
• Federal income tax refunds
• Earned income tax credits (EITC), a refundable tax credit for low-income working individuals and families

Navigating the intricacies of Medicaid rules and regulations can be a daunting task, making the determination of Medicaid eligibility a challenging endeavor. To ensure a smooth and successful application process, it is imperative to seek the guidance of a skilled Medicaid planning attorney, such as those on our team, before submitting your Medicaid application. Should you need assistance, the Law Offices of Albert Goodwin are here for you. We are located in Midtown Manhattan, New York, NY. Call us at 212-233-1233 or email [email protected] to schedule a consultation.