Does Medicare Have Asset Limits?

No. You can have as many assets as you like and still qualify for Medicare coverage.

Senior health insurance and Medicare topics can be complicated. And, the team at CoverageCoach understands! That’s why we provide honest, thoughtful answers to your most common Medicare questions. While Medicare has no asset limits, some other federal benefits do. It can get confusing for seniors and caregivers, so we’ll give a basic overview of them here.

Remember, if you need answers about Medicare, Medicare Supplement Plans or Medicare Advantage Plans, contact us today. Finally, let’s get into Medicare asset limits.

What Medicare is, and Why it Has No Asset Requirements

Medicare is senior health insurance for Americans age 65+. It’s a federal benefit that you’ve earned by working and paying into the program. Every time you’ve paid taxes or had money withheld from a paycheck, you’ve paid into Medicare.

Medicare is a fantastic program that helps older Americans stay healthy. Original Medicare includes Part A (hospital insurance) and Part B (health insurance).

You’ll qualify for Medicare if:

  • You’ve worked and paid into Medicare for 40 “quarters” — about ten years
  • You aren’t paying for a private senior health insurance plan
  • You aren’t getting health insurance through your employer
  • You’re age 65 or older

Throughout a lifetime of hard work, you may have created a considerable portfolio of assets. Medicare is not interested in counting them or making you report them or sell them. You can have as many assets as you like and still qualify for Medicare. (Other government-funded programs are interested in your assets. We’ll get to those in a moment.)

What Are Personal Assets, Anyways?

Per Investopedia, “personal assets are things of present or future value owned by an individual or household.”

They could include:

  • The home you live in, and other real estate
  • The vehicle you drive, and other vehicles you own
  • Cash, or money in the bank in the form of checking accounts, savings accounts or CDs
  • Expected sources of income, like the cash value of life insurance policies and annuities
  • Planned retirement income, like your 401k or Traditional IRA

Again, you’ve earned the right to Medicare by paying into it throughout your career. But some government programs do have strict asset limits. These are entirely separate from Medicare.

Medicare Programs with Asset Limits

Medicaid and Supplemental Security Income (SSI) are both federal programs that have strict asset limits. These programs are both designed to help low-income individuals and families with financial help and low-cost health care.

It makes sense that these programs have asset limits. So, it would be unfair to the taxpayers that fund these programs, if an individual were receiving an SSI check and free healthcare while sitting on a chain of income properties and collecting rents.

These programs are all taxpayer-funded and government-run. So it’s easy to get confused about asset limits. And if you were receiving Medicaid or SSI benefits before becoming eligible for Medicare, you might think the same restrictions apply. They don’t.

Finally, if you have more questions about Medicare, Medicare Advantage and Medicare Supplement plans, contact us. We’re always ready to give you a zero-pressure, zero-cost consultation to talk about your Medicare benefits and supplemental programs.

Related Reading & Resources:

Center for American Progress: Asset Limits Are a Barrier to Economic Security and Mobility

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