MA Income, Asset Limits, and Spenddown Increases

The ACA allowed states to increase the income standard for adults accessing Medical Assistance (MA) to 133% FPG (Federal Poverty Guideline) and eliminate the asset limits for this and most other groups eligible for MA under the expansion passed in 2013. However, these new limits did not apply to individuals over the age of 65 or to those with disabilities. Therefore, these populations are still subject to the lower, pre-ACA asset limits and income standards. If an individual with disabilities or an elderly individual has income over 100% FPG, they must spend-down to 75% FPG to access MA.

The legislation would increase the asset limits, excess income standard (spenddown) and income determination for persons with disabilities and seniors in MA. The income limits would be raised from 100% FPG to 133% FPG, placing this population on par with adults without dependent children. Additionally, asset limits for those populations still subject to asset limits, including persons with disabilities and seniors, are increased from $3,000 to $10,000 for an individual and from $6,000 to $18,000 for a household. Finally, the spenddown for those with a disability or over the age of 65 would be increased from 75% FPG to 133% FPG.

STATUS: The bill is in the Finance Committee. (S.F. 543)

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