The Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act, was enacted on March 27, 2020 as Public Law 116-136. It is a $2 trillion economic stimulus bill. The goal of this legislation is to provide relief to individuals and businesses that have been impacted by the coronavirus crisis.
Many individuals will receive $1,200 as an economic stimulus payment. The payment of $1,200 should not affect Medicaid eligibility as long as the funds are spent down within 12 months.
According to applicable federal law, the New Jersey Medicaid program is not allowed to have more restrictive income and resource requirements than Supplemental Security Income, also known as SSI. If an individual qualifies for SSI based upon income and assets, then he or she will also be eligible for Medicaid in the State of New Jersey.
Social Security will not consider the economic impact payments of $1,200 as income for SSI beneficiaries. In addition, the payment of $1,200 is excluded from resources for 12 months. Based upon federal law, Medicaid must also treat the payment of $1,200 in the same manner as SSI.
The payment of $1,200 will not be considered by Medicaid to be income. In addition, the $1,200 received from the government will not be considered a resource as long as the funds are spent down within 12 months.