Is it only the capital gains or dividends that count as income for expanded Medicaid?

Medicare Forum
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I’m 26 and live in NYC with expanded Medicaid. My income is $0, and each month I sell $2,000 worth of treasury bonds to cover my bills. In NY, I need to stay under $1,732/month to qualify for Medicaid. My question is: does selling $2,000 in treasury bonds push me over the income limit, or is it only the capital gains/dividends from the sale that count as income?

I’ve read the NY Medicaid Eligibility guidelines, and on page 5, it says only capital gains/dividends are counted. But I want to double-check that selling $2,000 in bonds won’t affect my Medicaid eligibility.

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2

Only the realized gain (or loss), along with interest and dividends, counts as income. In NY, once you qualify for Medicaid, you’re locked in for 12 months.

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I wasn’t aware of the 12-month lock-in for NY. I looked into it and found information about “continuous eligibility” in NY.

Just to confirm, does this mean that if I enrolled in expanded Medicaid on January 1, 2024, with a monthly income of $0, and later in the year I won a million-dollar lottery, I would still be covered until the end of 2024?

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4

When you report a higher income, you’ll receive this message:

Your Medicaid coverage will continue until [coverage end date] because individuals who are determined eligible for Medicaid remain eligible for benefits for twelve continuous months from their last eligibility determination.

This decision is based on Section 366(4)(c) of the Social Services Law.

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I appreciate the help. Thank you

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6

I’m assuming you are on NYSOH. If not, then none of this applies.

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Yes that’s correct. I’m on NYSOH

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9

You still need to report income changes per the instructions when you signed up.

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10

I’ll report dividends from the sale of my treasury bonds.

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11

You only need to report if the change would make you ineligible, if you read the instructions.

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Got it. I just reread the instructions and noticed they mention factors like income changes or moving that need to be reported if they affect eligibility. Thanks again for all your help!

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I’m still trying to wrap my head around this. So, does the lock-in mean that I could have a high income in one month, but as long as my income is below $1,732/month during the evaluation month, I stay on Medicaid?

I’m asking specifically for FIRE scenarios where someone qualifies for Medicaid and then, a few months before their renewal, sells off enough stock to cover a year’s expenses. In this case, could they continue to qualify for Medicaid year after year?

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