Income Cap Changes for 2020

Medicaid is the only government long-term care insurance program.  Each of the 50 states, as well as Washington, D.C., has Medicaid to help individuals pay for their long-term care needs at home, in an assisted living facility and a nursing home.  In order to qualify for Medicaid, there are strict rules with respect to assets and income.

            In New Jersey, an individual is not allowed to own more than $2,000.00 of resources.  A resource is an asset that can be converted to cash, including most life insurance policies that have a cash surrender value.

            New Jersey is one of a number of states in our country that has an income cap.  If an individual’s income is greater than the income cap then that person will not qualify for Medicaid assistance.  The income cap is based upon a person’s gross monthly income.

            According to applicable law, the Medicaid income cap is based upon the maximum benefits that an individual can receive from Supplemental Security Income, also known as SSI.  The Medicaid income cap is calculated by taking the maximum SSI benefit per month and multiplying it by 300%.  In 2019 the maximum SSI rate was $771.00 per month.  This resulted in a Medicaid income cap of $2,313.00.

            Beginning January 2020, the maximum SSI monthly benefit is $783.00.  Therefore, the New Jersey Medicaid income cap is calculated as follows:  $783.00 x 300% = $2,349.00.

            In summary, an individual must now have a gross monthly income of no more than $2,349.00 to qualify for Medicaid in the State of New Jersey.