Medicaid is a government health insurance program that allows individuals to get evaluated healthcare services with expectations for them to pay at a later date.
During application for this program, individual assets are counted to determine their eligibility, and in the event that they are unable to pay back before their death, the assets counted will be taken by Medicaid.
Therefore, since Individuals can buy cars while on Medicaid, can they also sell their cars while on Medicaid?
Yes, you can sell your car while on Medicaid but it must be done secretly to avoid getting your Medicaid healthcare benefits from being withdrawn.
Can I Sell My Car While on Medicaid?
Yes, you can most definitely sell your car while on Medicaid as it doesn’t affect your program, although, under certain circumstances, it could be No.
Despite the possibility of selling your car while on Medicaid, it is advisable not to do so while the application is ongoing, you should leave the car in your possession until the process is complete.
Medicaid is a public health insurance program created by the federal and state government for medically challenged people who can not afford to get private healthcare.
This program helps to subsidize the cost of healthcare while providing proper healthcare services, these services are however evaluated and the individual will be expected to pay back within a period of time.
How Can I Sell My Car While on Medicaid?
The most common way to sell your car while on Medicaid is to do so discreetly i.e. without the knowledge of Medicaid. Selling your car without Medicaid’s knowledge is frowned upon, but it is the best way to sell off a car.
Selling your car this way may however pose a problem if Medicaid finds out, they oftentimes find out about the transaction at a later date.
Some issues that may arise with their knowledge of the transaction are your Medicaid benefits being withdrawn and other penalties as they deem fit.
If you do not want to get caught, you will need to devise a means of selling off without their finding out.
Will Medicaid Make You Sell your Car?
Medicaid will not make you sell your car but there are circumstances where you will make the decision to sell it on your own either because you need the proceed from it to pay off your share of the healthcare payment or you don’t want the car useless after you get in the program.
You may however be required to sell your car if is not exempted.
When applying for Medicaid, there are assets that determine eligibility, but in most cases, a car will not be one of the requirements if you own just one.
In the case where the person applying has more than one car, only one of them will be exempted while all others will be sold.
If you have only one car, Medicaid considers it a non-countable and will therefore not take it or make you sell it.
Other assets that may fall in the non-countable asset category are; cash, not more than two thousand dollars ($2000) for a person, and for a couple, three thousand dollars ($3000), a primary home, etc.
Will Medicaid Take My Car When I Die?
No, Medicaid will not take your car when you die if you are able to pay the full cost of the Medicaid services you enjoyed.
A car is considered a non-countable asset i.e. assets that are considered to determine your eligibility for the Medicaid program. Therefore, after death, the chances of Medicaid taking your car are almost non-existent.
If Medicaid however valued your car as a countable asset in a case where you have more than one, then they may take the car in the event that you are unable to pay the cost of the medical services you enjoyed.
Meanwhile, when a person’s asset is taken after death, it is called an ‘Estate Recovery Program’. This is only put in effect when you are unable to pay the cost of health services.
Can You Have Two Vehicles on Medicaid?
Yes, you can have two vehicles on Medicaid although the possibility of this depends on the state and some other factors.
Taking Florida for example, the applicant is allowed to have two vehicles, unlike other states where you can only have one vehicle.
However, for the second vehicle to be exempted it must be older than 7 years, and must not be a luxury car or a classic car. A car older than 7 years will not be valued for much therefore you can keep it as a second one.
You can also have two vehicles in a case where couples are involved and each of them has a car and probably the third car.
In this case, the party that is not in the program still gets to keep their car in addition to that of the person in the program.
The best way to know if it is possible for you to have two vehicles on Medicaid is by checking with the state authority in public health insurance. There, you will be able to get the necessary requirements.
Can I Buy a Car while on Medicaid?
Yes, you can buy a car while on Medicaid provided it is the only car you own.
To buy a car while on Medicaid, you may be expected to inform them before making such purchases.
Sometimes if you buy a car while on Medicaid you may be considered as being financially able to pay for your healthcare services but this does not stop you from getting one.
Can you Buy a Car to Spend Down for Medicaid?
Yes, you can buy a car to spend down for Medicaid.
To spend down for Medicaid means you are reducing the value of all your assets in order to qualify for Medicaid.
When applying for Medicaid, your asset will be valued, if your assets are in excess, it may be concluded that you have more than enough and are not eligible to get into the program hence why some people spend down for Medicaid.
In a bid to spend down for Medicaid, an applicant can decide to buy a new car to be driven by themselves or any member of the family.
A car is considered a non-countable asset therefore it will be exempted when eligibility is determined.
Conclusion
It is important to know what the Medicaid eligibility requirement is and the implication of the Estate Recovery Program before completing the application process. Also, when considering spending down for Medicaid carefully weigh your options and know which will work best for you.