When Does Income Become a Resource?
What happens to income after you receive it? As we have covered in other articles Texas Medicaid has very specific rules for the treatment of income and the treatment of assets. Therefore, it is critical your Houston Medicaid Attorney understands when property is labeled as income and when it is labeled as a resource.
The General Rule of Income for Texas Medicaid
Income is anything a person receives in cash or in kind that can be used to meet the person’s needs for food and shelter. It is the receipt of any property or service a person can apply, either directly or by sale or conversion, to meet basic needs for food and shelter. Income is normally counted on a monthly basis.
Is Income Always Treated as Income?
No. The legal definition of income for Texas Medicaid eligibility only applies for a limited time. For example, if you receive pension checks that you do not spend but rather deposit into a separate bank account where nothing else goes; is that account treated as income because that is all that was deposited into it? Unfortunately no, property loses its label as income through the passage of time, not through how it is used.
For Texas Medicaid the receipt of a payment – in the form of cash, property, or service – is income in the month of receipt and a resource as of 12:01 a.m. on the first day of the month after receipt. If you receive a payment on April 26th the payment may be treated as income only until 12:01 a.m. on May 1st.
Sort Out Income and Resources
Speak with a Woodlands Medicaid Attorney today if you need help sorting out what property is treated as income and what property is treated as a resource for Texas Medicaid eligibility. The wrong identification of property can cost your family thousands of dollars in unpaid nursing home bills while the mistakes are remedied.
TexasTitle19.com is your connection to an experienced Houston Medicaid Attorney who can help you find the right nursing home, get the best care, and pay for it all without going broke. We are currently focused on Harris and Montgomery Counties, including the areas of Houston, Conroe, The Woodlands, Spring, Tomball, Humble, and Katy. We also provide consulting services throughout all of Texas.