Evaluating Medicaid Benefits for Your Life

Medicaid benefits are available to certain individuals who meet income or other qualifications for the benefits.  The Medicaid program, which was created under Title XIX of the Social Security Amendments of 1965 along with Medicare, provides benefits for poor and other classes of individuals who do not have access to adequate healthcare insurance.  The Department of Heath and Human Services (DHHS), Center for Medicaid and Medicare Services and the individual states, administer the program.

Medicaid Is a Government Entitlement Program

The Medicaid program is not comparable to private insurance programs offered either individually or through an employer-sponsored group health insurance plan. There are restrictions, limitations and other requirements associated with the program that are unique to Medicaid. This is because Medicaid is a government-run entitlement program and must meet certain guidelines as required by congress and DHHS.

Some Qualified Medicaid Recipients

Medicaid meets the healthcare needs of people age 65 who are in need of assistance (in addition to Medicare), individuals who are blind, in end stage renal failure, are indigent immigrants living in the United States with the dependents or in teens in foster care. One would hope that participation in the Medicaid program is a temporary not a permanent solution to meeting a qualified individual’s healthcare needs.



Are Medicaid benefits taxable income?



Medicaid benefits are not taxable under any circumstances. Medicaid benefits are provided from the federal government as part of tax money. When they give you money for benefits, you do not have to pay taxes on these benefits. Typically, Medicaid is one of the limited benefits that people with disabilities can get. If they had to pay taxes on these benefits, there would not be much left for them to use. The benefits are limited enough, and the government realizes that people cannot afford to pay taxes on them. 

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