In order to qualify for Medicaid assistance, an individual’s gross monthly income must be less than the Medicaid income cap. If a person’s gross monthly income is greater than the Medicaid income cap then he or she will not qualify for Medicaid, unless a Qualified Income Trust is established. This is also known as a QIT.
The income cap is based upon an individual’s gross monthly income rather than net income. Therefore, a deduction from an individual’s income, such as the Medicare Part B premium, is not considered in determining eligibility for Medicaid assistance.
The Medicaid income cap in 2021 was $2,382.00. The Medicaid income cap has increased in 2022 by almost 6%. The Medicaid income cap in 2022 is $2,523.00.
The New Jersey Medicaid regulations provide that a person’s gross monthly income is not allowed to exceed 300% of the maximum Supplemental Security Income (SSI) benefit for a single individual. The SSI benefit for a single individual in 2022 is $841.00. Therefore, the Medicaid income cap for 2022 is calculated as follows: $841.00 x 3 = $2,523.00.
If an individual’s gross monthly income is less than $2,523.00 then he or she will satisfy the income requirement for Medicaid. If that person’s gross monthly income is greater than $2,523.00 then Medicaid eligibility will not be acquired unless a QIT is established.