Can you have a car and get Medicaid?
Asked by: Iva Lubowitz | Last update: September 7, 2025Score: 4.6/5 (65 votes)
Can you own a car and be on Medicaid?
To qualify for Medicaid, you must spend your assets down to approximately $2,000. Certain assets, though, such as cars and homes, are considered "non-countable," meaning they aren't considered when a Medicaid agency determines your eligibility.
Does your car count as an asset?
How Is a Car an Asset? Your car is considered a consumer product, and consumer products can depreciate. A car is a depreciating asset that loses value over time but retains some worth. Because you can convert a vehicle to cash, it can be defined as an asset.
What disqualifies you from Medicaid?
In general, a single person must have no more than $2,000 in cash assets to qualify. If you're over 65, the requirements are more complex. Whatever your age, there are strict rules about asset transfers. Medicaid may take into consideration any gifts or transfers of cash you've made recently.
What is an exempt asset for Medicaid?
There are “countable assets” and “exempt assets”. An applicant's home furnishings and appliances, personal items, vehicle, and generally their home, are exempt. For home exemption, an applicant (or their spouse) must live in their home or the applicant must have “Intent to Return”.
ACCOUNTANT EXPLAINS: Should You Buy, Lease or Finance a New Car
How do I keep my assets from Medicaid?
Asset Protection through Irrevocable Trusts: Irrevocable trusts, such as Medicaid Asset Protection Trusts (MAPTs) and Special Needs Trusts (SNTs), are invaluable tools for shielding assets from Medicaid eligibility calculations and planning for long-term care expenses.
How often does Medicaid check your bank account?
Medicaid agencies can check your account balances for bank accounts at any financial institution you've used in the past five years. They will check when you submit an application and on an annual basis, but checks can occur at any time.
Who gets denied Medicaid?
The most common reason an applicant is denied Medicaid is income or assets above the eligibility criteria. In most states in 2025, an applicant's monthly income must be less than $2,901/month, and their assets (including money in bank accounts) must be less than $2,000.
Does Medicaid actually check your income?
Some states use a computerized system to cross reference a Medicaid applicant's reported income. For instance, in California, an electronic database, the Income Eligibility Verification System (IEVS), is used to match the income information provided by the applicant to other databases to verify it is accurate.
What triggers a Medicaid investigation?
Although each state statute is slightly different, MFCU investigations always involve: billing fraud involving the Medicaid program; abuse and neglect of residents within facilities that receive Medicaid payments; and. misappropriation of patient funds by such health care facilities.
Is a car payment an asset?
A car loan, home mortgage, or even child support obligations are all liabilities that should also be included in your overall net worth.
Can a nursing home take your vehicle?
No, the nursing home does not take cars. The car is an exempt asset for Medicaid application purposes. If you sell it, the proceeds are not exempt. If this is worth more than $2000, then it will render your mother ineligible for benefits until the proceeds are spent down.
Do banks consider cars assets?
There are several types of items you can include in your mortgage application as an asset. These items can include money, investments, properties, cars, valuable items, business shares, and other financial assets.
Can you own a home while on Medicaid?
Learn more about MERP. California eliminated their asset limit effective 1/1/24. While this means one's home is automatically safe from Medicaid while they are living, the home is not necessarily safe from Medicaid's Estate Recovery Program.
Is it OK to have Medicaid and private insurance?
If your annual income is 200% or less of the Federal Poverty Line guidelines, your application for Medicaid will typically be accepted despite having private insurance. New income requirements outlined in the latest Affordable Cares Act allow a more comprehensive range of people to be eligible to receive Medicaid.
What assets can you keep when you go on Medicare?
On January 1, 2024, the asset test to qualify for a Medicare Savings Program was eliminated. This means individuals can have any amount of assets and still qualify for a Medicare Savings Program. Assets are things that you own, such as bank accounts, cash, second homes and vehicles.
How do I protect my income from Medicaid?
One such option to protect assets is a Medicaid Trust. By placing some of your assets in an appropriate trust, you can protect them from Medicaid and have them not be counted when you are applying for benefits.
Does Medicaid consider your bills?
Some states require you to submit receipts or bills to Medicaid to show your monthly expenses. Other states may let you pay a monthly premium directly to Medicaid for the amount that your income is over your state's Medicaid spend-down level.
What income do I report to Medicaid?
Take your adjusted gross income amount and add any untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. Don't add any Supplemental Security Income (SSI) you got.
What disqualifies me from Medicaid?
An applicant must meet the Medicaid resource and income limits and guidelines set by their state. Resources and income above the state limits may disqualify the applicant.
Why do doctors refuse Medicaid?
One reason is that reimbursement rates for Medicaid are lower than for Medicare or commercial insurance. Another (often overlooked) factor, however, is physician's risk of payment denials and the administrative hassle they face trying to get reimbursed by Medicaid.
Why are some people not eligible for Medicaid?
Medicaid beneficiaries generally must be residents of the state in which they are receiving Medicaid. They must be either citizens of the United States or certain qualified non-citizens, such as lawful permanent residents. In addition, some eligibility groups are limited by age, or by pregnancy or parenting status.
How many cars can you own on Medicaid?
An applicant is allowed to own one car that's not included in your resource limit if it's used for transportation or by another person living in the house, such as a spouse. You also don't have to be the driver of the vehicle. It's important to know that the value of the vehicle doesn't matter.