Medicaid won’t take all of your Social Security Income. If you live in your own home and receive regular program payments, your Social Security Income and other Social Security benefits are counted as income to determine your eligibility, and the state will not take them.
However, if you reside in a long term care facility, some of what you get will go toward your care costs. Speak with Texas Medicaid eligibility and asset protection lawyers if you’re worried that all of your Social Security Income will be taken by Medicaid. They can offer comprehensive legal guidance and support regarding Medicaid benefits and Social Security Income.
Your attorney can address any concerns or questions you have about Medicaid benefits, Social Security Income, work income, asset limits, pensions, and other topics relating to your situation. Depending on your circumstances, your lawyer may provide tips and recommendations to help minimize the risk that Medicaid will take some or most of your Social Security Income.
Does Medicaid Take Out Money from Your Social Security Check?
The program doesn’t automatically take money directly from your Social Security check. Alternatively, if you live in a nursing home or another type of long term care facility and Medicaid is paying for your care, you’re required to put most of your monthly earnings toward the cost of that care.
Generally, if you get Medicaid for everyday health services while you live at home, your Social Security benefits are only counted as income to assess your eligibility. In this situation, you will continue to get your full Social Security benefits check.
The program covers long term care. Because of this, if you live in a long term care facility, you will have to contribute most of your Social Security Income toward the facility’s bill. You are allowed to keep a small monthly Personal Needs Allowance for incidental expenses. This amount will vary based on the state where you live.
For a free legal consultation, call (800) 562-9830
What Types of Income are Excluded by Medicaid?
Account for the different types of income excluded by long term care Medicaid as you pursue benefits. Lawyers are available to analyze your situation and give you insights into whether your income may be affected by Medicaid.
Below are examples of some of the types of income that may not be counted under the program:
- Supplemental Security Income (SSI)
- Child support payments
- Gifts or donations
- Veterans’ benefits
- Insurance payouts
- Payments to beneficiaries
- Compensation for injuries
- Relocation assistance
- Workers’ compensation benefits
- Federal tax refunds
- Payments from Temporary Assistance for Needy Families (TANF)
- Aid to Families with Dependent Children (AFDC)
It’s important to note that the program imposes strict guidelines that may apply to how much work income you can earn and your assets. With proper planning, you can safeguard your earnings and resources and maximize your program benefits.
What Happens to Your Social Security Income in a Nursing Home?
When Medicaid covers the cost of nursing home care, the program requires you to contribute most of your monthly earnings, including Social Security, toward the cost of your care. This is known as the patient responsibility amount or cost sharing. You won’t have to give up all your earnings, though.
The program allows a few key deductions, such as:
- Personal Needs Allowance: You’ll keep a small amount of your earnings for personal expenses like clothing, toiletries, or phone bills.
- Spousal income protections: If you’re married and your spouse does not require Medicaid, they may be entitled to keep a portion of your earnings to meet their living expenses.
- Health insurance premiums: The program allows you to deduct payments for health insurance premiums, including Medicare.
In assisted living facilities, Medicaid can cover the cost of personal care and health-related services, but it may not pay for room and board. As for how the program treats your income, it compares your monthly household finances to your state’s limits. Meanwhile, program facility participation involves meeting specific regulatory, licensing, and billing criteria.
How to Protect Your Income and Assets
As you think about long term care planning and what it will take to secure your earnings and assets, remember that you have access to legal help. Medicaid eligibility and asset protection attorneys may provide personalized strategies for your situation, such as:
- Spousal protections: These can help ensure that your spouse retains sufficient income to support their standard of living, even if you require Medicaid.
- Medicaid planning trusts: You can use legal tools, such as trusts, to shield your assets from being counted toward your Medicaid eligibility.
- Exempt assets: Your attorney may help you identify and protect assets that Medicaid excludes, like your primary home, personal vehicle, or household items.
Since Medicaid regulations are complex and vary by state, it’s easy to make mistakes that could result in penalties or denial of benefits. Working with an experienced lawyer may help you avoid costly errors and secure the care that you need while protecting your financial future.
Medicare Savings Programs That May Help You Cover Your Medicare Costs
You could qualify for a Medicare Savings Program that helps cover your Medicare premiums, deductibles, and coinsurance for beneficiaries with limited means. There are four types of Medicare Savings Programs:
- Qualified Medicare Beneficiary (QMB): With this, you will receive money for Medicare Part A and/or Part B premiums, deductibles, coinsurance, and copayments.
- Specified Low–Income Medicare Beneficiary (SLMB): This program covers your Part B premiums only.
- Qualifying Individual (QI): As a QI, your Part B premiums alone are covered. You will have to reapply annually, and approvals are granted on a first-come, first-served basis.
- Qualified Disabled Working Individual (QDWI): If you’re a disabled working individual, you may be eligible for this program, which will cover your Part A premiums.
Consider the differences between Medicare vs. Medicaid and other factors as you evaluate all of the options under both programs at your disposal. This will help you decide whether it is in your best interests to pursue a Medicare Savings Program or various alternatives.
How SSI Recipients with Medicare Could Get Extra Help with Their Prescription Drug Costs
If you receive SSI, you are automatically eligible for the Medicare Part D Extra Help program. This serves as a low-income subsidy that waives plan premiums and deductibles and caps your out-of-pocket prescription costs for brand-name and generic prescription drugs.
For 2026, those who qualify for this program pay no more than $12.65 for each covered brand–name drug and $5.10 for generics. If you also have full Medicaid coverage, your maximum copay drops to $4.90 per covered drug. Once your total out-of-pocket prescription costs reach the catastrophic coverage limit, you’ll have no copayments for the rest of the year.
As an Extra Help recipient, you are granted a special enrollment period, which gives you the freedom to change your Medicare Part D drug plan outside of the standard Medicare open enrollment period.
Learn More About Medicaid and Social Security Income
Medicaid will not take all of your Social Security income, but understanding how your earnings are applied toward home care and nursing home care costs is essential for long term care planning. With Medicaid eligibility and asset protection lawyers on your side, you can get the help you need to secure your earnings and assets and ensure that your legal rights are upheld.
The team at Marc Whitehead & Associates has 120 years of combined experience. We can teach you about Medicaid income limits, disability benefits, and other legal topics. Plus, we can help you make informed decisions on Medicaid so you can keep the most Social Security Income possible.
We have extensive experience helping individuals and families navigate Medicaid work income and benefits and Social Security rules. Contact us today to schedule a consultation and learn how we can assist you in securing the care and financial stability you deserve.
Call or text (800) 562-9830 or complete a Free Case Evaluation form
