Texas Medicaid Eligibility: Income and Assets

Overview

• Texas has a Medicaid eligibility income cap with no deductions for medical expenses.
• The income cap for 2024 is $2,829/month.
• Qualified Income Trusts (QITs) can help those who exceed the income limit by allowing income to be transferred and managed for Medicaid purposes.
• Financial eligibility considers both income and assets.

Qualified Income Trust (QIT)

• Allows income to be transferred to meet eligibility requirements.
• Provides a $75/month personal needs allowance.
• Covers unreimbursed medical expenses (e.g., dentistry, health insurance).
• Contributes towards maintaining a spouse in the community and paying nursing home co-pays.

Medicaid System Challenges

• Medicaid rules and benefits differ significantly between states.
• Texas does not supplement federal Medicaid benefits, unlike most states.
• The system is viewed as discriminatory and complex, with limited personal allowances.

Determining Financial Eligibility

• Financial eligibility is based on income and assets, ignoring the community property concept.
• Some assets are not counted, such as primary residences and certain personal property.

Non-countable Assets

• Primary Residence: Up to $713,000 equity is excluded.
• Vehicles: One vehicle for transport and additional if handicapped-accessible.
• Livestock: Used for business or home consumption.
• Business Property: Essential for self-support.
• Burial Plots and Expenses: Up to $1,500.
• Personal Property: Worth up to $60,000.
• IRAs, 401(k)s: Not counted if making Required Minimum Distributions.

Specific Policies

• Transfer penalties may apply if assets are transferred for less than fair market value.
• Medicaid considers gifts differently than federal Gift Tax rules.

Definitions

• Income: Property or service that can be used to meet basic needs for food and shelter.
• Resources: Cash, liquid assets, or property that can be converted to cash.
• Gifts: Transfers of assets for less than market value resulting in penalties.

Planning and Resources

• Planning for Medicaid eligibility is complex and often requires professional advice.
• Various resources are available for Medicaid planning, elder law, and special needs planning.

Contact Information

• The Garrett Law Firm, PLLC offers services in asset protection, Medicaid planning, and more.
• Located in Austin, Texas, serving Central Texas areas.
• Contact via email or phone: 800-295-3449