Social Safety Nets help us all (pt 1)
Part 1 - Medicaid
Social safety nets are not just good for those utilizing them, they help everybody. If you’re subscribed to any of my media content then more than likely you share at least some of my point of view. After all, you’re probably a parent of, a professional serving, or a person with a disability. Heck, maybe you check all three boxes (like I do). So this isn’t necessarily written for you. Please consider sharing it with those in your circles, in the hopes of giving them another perspective to consider.
Before I go too much further I want to acknowledge the cost of administering social safety net programs. By virtue of what they are many of those paying for them (through taxes) are not using them. I don’t think anyone likes to think about something bad happening, especially something significant enough to put you in a position where you would have to rely on a social safety net.
According to a 2021 Bankrate survey, more than half of those living in the United States don’t have enough of an emergency fund to cover (3) months of expenses. Never mind what happens to families when they get a cancer diagnosis, get hurt in a bad accident, or have a child with complex health conditions and/or a disability. Not having the money to cover challenges like these is just one example of why safety nets exist.
So let’s take a deeper dive and explore a few programs in more detail, starting with Medicaid. Medicaid is managed at the state level, so there isn’t a “standard” I can speak to. I’m going to focus on the rules for “Aged, Blind, and Disabled” Medicaid using numbers I took from the American Council on Aging. In most states, your asset limit will be $2,000.
Income limits are more complicated, with some states allowing higher wage earners to “buy in”. It looks like states are split, with approximately half allowing up to $914/mth and half allowing $1,133/mth for a single individual before Medicaid buy-in. If you’re in a position where you are thinking about applying for Medicaid, see what your state allows. Here is a link to find your state’s eligibility requirements.
