Does Buying a New Car Affect Medicaid

Health coverage for low-income earners and aged individuals doesn’t sound bad. It is a better way of giving everyone a chance to live and have good health.

A Medicaid is a system constructed to serve minors, the aged, the disabled, and anyone whose income is below a certain level with a goal to create a balance and yet a sustaining healthy life for everyone with a low-income capacity.

Therefore, does buying a new car affect Medicaid?

Buying a new car may not affect Medicaid if it’s your only car and is not too expensive. But, buying a second car while on Medicaid is likely going to affect your Medicaid program and have the car taken away by Medicaid.

Practically, owning a car isn’t still a problem likewise but owning over one as a person under Medicaid calls for attention.

What is Medicaid?

A Medicaid is a state and federal health care program that gives out free or low-cost health benefits or coverage to a larger body of people under the category of “Low-income earners, aged, disabled, pregnant women and a few more.

Not all are required to be under this program. Trying to fake your way in isn’t possible. Eligibility is state abound, but aside from being from a state or from a certain county doesn’t amount to being a part of the category.

Should I Buy a Car While on Medicaid?

Owning a car is recorded as a “non-countable” asset. It can be for the movement of the individual to important places. Owning a car shouldn’t be so much of a big deal.

Having another car aside the first can call in attention. If you hide another car, Medicare can in a way seize and use the fund to settle your hospital bills.

A Medicaid doesn’t stop you from owning a car, provided it doesn’t go above the prescribed amount.

Does Buying A New Car Affect Medicaid?

No, having yourself in the comfort of a new car doesn’t stop you from benefiting from Medicaid because it will be your only car.

Before signing up for Medicaid, note that your secrets or May I say your earnings and financial life will be dragged out to be sure you are qualified and not that you are trying to squeeze yourself into the system.

Starting with your monthly income, your daily and yearly income, your non-liquid assets, your assets (house and cars), and every other information they can lay their hands upon to be sure you are not a cheat.

This might seem somehow hectic and discomforting to the juicy offers and benefits of this program, but be calm enough to know a few things I will share in this article.

Moreover, you can’t be so restricted to enjoy life benefits just because you are on Medicaid.

However, you can be on Medicaid and buy a $300,000 luxurious car. Who gave you the money to buy the car? Which loan did you get to purchase the car?

Can you get a new car even while you affect Medicaid? It is a two-edged sword with two views of answers.

Yes, you can buy a new car provided you own only a car but aside from owning just a car; you can be misinterpreted to be “financially buoyant”.

Being able to get a new car can assume the fact that you can pay your own bills and settle your health-related fees.

Moreover, another question arising here is, can one sell his old car while on the Medicaid program? And will Medicaid take it away?

How Can Medicaid Know if I Buy a New Car?

Is it possible to buy a car and not drive it? Not so possible. Medicaid automatically has a way to monitor their clients, and it is so much not reasonable to believe you will have a car and it won’t be known to people around you.

If people can know you have a car, it shouldn’t be hard for a federal body to access such information about you.

Can Medicaid Take My Car After Purchase?

Medicaid can take away your car after purchase if it places you outside the boards of the “expected” income. It is regarded to be “cheating” if you are not what you claim to be.

Accessing federal funds when you are not qualified is a break in protocol and it comes with consequences.

How Many Cars Can I Own on Medicaid?

Owning more than a car sounds financially free. Medicaid doesn’t cater to individuals who can pay their bills. A Medicaid caters to individuals who are aged, pregnant, below required income, and disabled.

A Medicaid rule differs regarding states and location, find that of your location and stick to it.

However, an asset of above $2000 dollars is likely not to be considered for Medicaid. Vehicles with higher pay are discarded by Medicaid even if it is your first.

Consequences of Buying a Car While on Medicaid

Medicaid doesn’t place a consequence on you because you choose to own a car. Owning or driving a car can be a part of the assets allowed for anyone under the policy of a Medicaid permitted it doesn’t go against the required amount to be owned.

A few consequences can be reviewed, they include:

1. You Lose a Right to the Benefit of Being Under Medicaid

You won’t enjoy any free offer again even if you are aged because you own things that prove you are financially capable of your bills.

The Medicaid system ensures everyone under the policy does not make more than $2,382 monthly and owns not more than $2,000 stocks, bonds, or liquid assets.

Owning above these things automatically positions you to be “Capable” of settling your own bills.

2. You Can Have Your Asset Seized

Cheating your way into a Medicaid doesn’t sound wise to me. If after a long time of enjoying the benefits, your secrets get exposed, the Medicaid system may have your asset seized and used to settle all the bills you might have enjoyed.

Medicaid is an entitlement program yet doesn’t give room for people who are way above the poverty chain.

It is required that individuals who are living on a limited income can have a good healthy life, but going against the rule of Medicaid might give you a federal strike.


Medicaid is a national insurance program for individuals under the low-income rate, for individuals who can’t afford enough health benefits. The creation of this isn’t a free check for everyone to misuse or take advantage of; it is for those who truly can’t afford their hospital bills, individuals who are aged, pregnant, and the likes of low-income earners.