Selling your house is a major life step, no matter what you have planned for the future. And if you’re a Medicaid recipient, you may be wondering how selling your house impacts your benefits.
In this Redfin article, we’ll outline your options when selling your house while on Medicaid. Whether you’re selling your house in Atlanta, GA, or your townhouse in Columbus, OH, here’s what to know about the potential impacts on your Medicaid coverage.
Medicaid eligibility when selling your house
If you need to sell your house while on Medicaid, you may be wondering if you’ll lose your benefits. The short answer is, it depends. Whether selling your home impacts your Medicaid eligibility depends on how much proceeds you make from the sale.
Medicaid is means-tested to determine your eligibility. Usually, Medicaid uses income or asset limits to determine if you qualify. In many states, the limit for an individual is around $2,000. It may be higher or lower depending on your state and household situation. If home sale proceeds exceed the asset limit, you may become ineligible for Medicaid until your assets are reduced or exempted following your state’s guidelines.
One important factor to consider is that your “primary home” isn’t considered an asset. However, any proceeds from selling your home are counted toward your assets. If you’re purchasing a new primary home with the proceeds from this sale, you may not lose Medicaid.
How will Medicaid know if you sell your house?
Medicaid eligibility is based on income and assets, so states have several ways of identifying any changes to your finances. These methods are generally the same ones used when you first applied for Medicaid. Common ways a home sale may be identified include:
- Public records: Real estate transactions are public record, so state Medicaid offices can access this information if needed.
- Financial disclosures: When renewing Medicaid, you’ll likely need to disclose your finances,…