How do tax rebates figure in determining MassHealth eligibility?

Submitted by Laura at CP on May 9, 2008 - 10:34am.

MassHealth will not count this year’s economic stimulus payments to taxpayers as income when determining eligibility, in accordance with Centers for Medicare and Medicaid Services (CMS) guidelines (PDF). The Economic Stimulus Act of 2008 prohibits any federal, state or local program receiving federal funds – such as MassHealth, Medicare, Food Stamps, Head Start, WIC and fuel assistance – from counting the rebates as income for the purposes of determining eligibility or calculating benefits.

The situation is different for seniors, who must report their assets as well as their income to MassHealth. If the tax rebate is not used within a three-month exemption period – the month of receipt plus the two following months – it will be counted as an asset. If it’s put into a savings account, it will still become an asset after the exemption period expires.

People who have not yet filed for their stimulus payment have until October 15 to do so. The Center on Budget and Policy Priorities (based in Washington, D.C.) has outreach materials in English and Spanish to promote the stimulus payments, and will train volunteers to reach out to eligible people.

Tax rebates and MassHealth eligibility

Neil Cronin of Massachusetts Law Reform Institute says it is his understanding that stimulus payments to nursing home patients should not be transferred to the nursing facility as part of the patient pay amount, but should be retained by the patients for their own use. Only if the money is left unspent after 90 days does it become a countable asset which may have an impact on nursing home residents' continued eligibility.

If advocates experience different results with long-term clients, they should contact Neil at 617-357-0700 ext.309

Post new comment

Comments are reviewed for relevance to discussion.
The content of this field is kept private and will not be shown publicly.
  • You may post PHP code. You should include <?php ?> tags.
  • Lines and paragraphs break automatically.

More information about formatting options