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Purple··4 min read

What Is Medicaid and How Does It Work with SSI?

Most SSI recipients automatically qualify for Medicaid. This healthcare coverage is a crucial part of the SSI program. Here's what you need to know.

In this article, we'll cover:

  1. What Medicaid is
  2. How SSI links to Medicaid
  3. What Medicaid covers
  4. Keeping Medicaid while working

1. What Medicaid Is

The basics:

  • Government health insurance program
  • For people with limited income and resources
  • Joint federal and state program
  • State-administered (rules vary)

How it differs from Medicare:

  • Medicaid: Need-based, often immediate
  • Medicare: Earned through work, for age 65+ or disabled (after 24-month wait)
  • Different eligibility rules
  • Can have both (dual eligible)

What it provides:

  • Doctor visits
  • Hospital care
  • Prescription medications
  • Mental health services
  • Long-term care
  • Preventive services

2. How SSI Links to Medicaid

Automatic eligibility in most states:

  • If you qualify for SSI, you qualify for Medicaid
  • No separate application needed
  • Called "automatic eligibility" states
  • Most states work this way

209(b) states:

  • Some states have stricter Medicaid rules
  • May require separate application
  • May have different criteria
  • Check your state's rules

When Medicaid starts:

  • Usually the same month as SSI
  • May be retroactive
  • State processes may vary
  • Keep documentation

Important: Even if SSI is small (like $1/month), you may still qualify for Medicaid.

3. What Medicaid Covers

Basic services:

  • Inpatient hospital
  • Outpatient hospital
  • Doctor services
  • Lab and X-ray
  • Nursing facility services
  • Home health care

Often covered:

  • Prescription drugs
  • Mental health services
  • Dental care
  • Vision care
  • Therapy services
  • Medical equipment

State variations:

  • Each state decides optional services
  • Coverage levels differ
  • Co-pays vary by state
  • Check your specific state program

No or low cost:

  • Little to no premiums
  • Low or no co-pays
  • No deductibles (usually)
  • Comprehensive coverage

4. Keeping Medicaid While Working

1619(b) provision:

  • Work and keep Medicaid even if SSI stops
  • If you were eligible for SSI in prior month
  • Still meet disability requirements
  • Need Medicaid to work
  • Earnings under state threshold

How 1619(b) works:

  • Protects healthcare while you work
  • Earnings can be substantial
  • Each state has different threshold
  • Check your state's limit

Requirements:

  • Still meet SSI disability criteria
  • Need Medicaid to work
  • Couldn't afford similar coverage
  • Earnings under state's threshold

Medicaid Buy-In:

  • Many states offer buy-in programs
  • For working people with disabilities
  • Pay small premium for coverage
  • Higher income limits than regular Medicaid

Why this matters:

  • Healthcare is major barrier to work
  • Losing Medicaid can be devastating
  • These programs protect you
  • Enable work without fear

If You Lose SSI

Scenario 1: Work stops

  • Expedited reinstatement available
  • Medicaid typically continues during process
  • Benefits can restart quickly

Scenario 2: Resources too high

  • May lose both SSI and Medicaid
  • Unless in 1619(b) status
  • Spend down to regain eligibility

Scenario 3: Income too high from work

  • 1619(b) may protect Medicaid
  • Even if SSI cash payment stops
  • Check your state's threshold

Managing Your Healthcare

Keep your coverage:

  • Report work but understand protections
  • Know your state's Medicaid rules
  • Use available work incentives
  • Don't assume work ends Medicaid

Use your benefits:

  • Get regular check-ups
  • Take prescribed medications
  • Use mental health services if needed
  • Preventive care is covered

How Purple Helps

While Purple doesn't directly manage Medicaid, we help with:

  • Tracking income for eligibility awareness
  • Maintaining SSI compliance
  • Keeping records for reporting
  • Managing benefits alongside healthcare
  • Understanding your full financial picture

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