Social Security Medicaid asset limit problem - can exceeding $2000 limit be fixed retroactively?

This is a fixable situation! Your mom has received what's called a 'resource determination' and there are multiple ways to address it: 1. SPEND DOWN: The most immediate solution is to spend down below the $2000 limit as soon as possible. Have her use the excess funds on necessities like medical supplies, home repairs, or prepaying bills. Keep all receipts. 2. EXCLUSIONS: Some resources don't count toward the $2000 limit. For example, if part of that inheritance could be classified as a burial fund (up to $1,500), it's excluded. 3. APPEAL: She can file a Request for Reconsideration (Form SSA-561) within 60 days of receiving the notice. This buys time while continuing benefits. 4. SPECIAL NEEDS TRUST: Another option is setting up a Special Needs Trust or ABLE account, though these usually need to be established before exceeding the limit. When she meets with SSA, have her explain that she didn't understand the rules and that the funds are now below the limit. Good cause can include lack of understanding of reporting requirements.

OMG ive been through this EXACT nightmare!!! the $2000 limit is RIDICULOUS in 2025!!! how is anyone supposed to live on that???? what if your car breaks down or you need emergency dental work??? my advice: spend down IMMEDIATELY and keep EVERY SINGLE RECEIPT. buy needed things like 6 months of medications in advance, prepay rent, fix anything broken in her house. then go to SSA office with all receipts and bank statements showing she's under $2000 now. dont give up!!!! the system is designed to kick people off but if you fight back they usually reinstate you. my benefits got cut off 3 times in 2 years for going a little over and i got them back each time but it was a BATTLE.

My brother had this problem. He went to the SSA office and explained it was a one-time thing and promised to spend it down quickly. They gave him some form to fill out and he kept his benefits. Don't worry too much, it happens all the time.

I work with SSI recipients regularly, and this is a common issue. Here's what your mom should do: 1. The 6-month notice means they're giving her time to fix this before termination actually occurs. 2. For the inheritance portion, if it was truly designated "for final expenses" in writing, she should gather that documentation. Up to $1,500 can be excluded as a burial fund. 3. For the tax refund, SSI has a 12-month exclusion period for tax refunds - they don't count toward the resource limit! She should specifically mention this exclusion when she contacts SSA. 4. File the Request for Reconsideration immediately to protect her appeal rights. 5. Contact the Medicaid office separately from SSA - sometimes they have different processes. Keep in mind that resource determinations are made on the first day of each month. So if she was over $2000 on the 1st of the month, that entire month counts as being over the limit, even if she spent it down later that same month.

Have you tried reaching the SSA to discuss this situation? I spent THREE DAYS trying to get through to someone at my local office when my mother had a similar issue with her SSI resource limit. Kept getting disconnected or waiting for hours. So frustrating! I finally used Claimyr (claimyr.com) to get through to a live agent at SSA. They have this service that calls SSA for you, waits on hold, then calls you when an agent picks up. Saved me hours of frustration. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU When we finally talked to the SSA rep, they were actually quite helpful and walked us through the spend-down process and documentation we needed. Made all the difference in getting her benefits reinstated quickly.

This might be controversial, but I've known several people who simply withdrew the excess cash, spent it on necessities without receipts, then went back under the limit. SSA generally just wants to see the bank balance back under $2000. They rarely ask for detailed accounting of how you spent it down unless they suspect fraud. Just sharing what I've observed over 15+ years on benefits. The system is broken with that $2000 limit that hasn't changed since the 1980s. What was reasonable then is impossible now. My caseworker privately told me they understand people have to do what they need to survive.

sorry to piggyback on your post but does anyone know if the medicaid look-back period applies to SSI medicaid too? my grandma gave me $5000 last year (before i applied) and im worried they might count that against me

Just to update on the tax refund exclusion that was mentioned - yes, tax refunds are excluded from counting toward the $2000 SSI resource limit for 12 months after receiving them. This is thanks to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. So if part of that $3250 was a tax refund, your mom should specifically mention this exclusion when she contacts SSA. They may need to adjust their determination if they weren't aware that portion was a tax refund. This combined with the potential burial fund exclusion could potentially resolve the entire issue without even needing to spend down, depending on how much of the $3250 falls into these categories.

One final tip: when your mom communicates with SSA, she should emphasize that these were one-time deposits and not recurring income. Have her bring bank statements from before and after to show her account is typically well below the limit. If the tax refund was $1420 and $1200 of the inheritance can be excluded as burial funds, that would resolve the issue. The remaining portion of the inheritance would still count, but you've already identified enough exclusions to potentially bring her below the $2000 limit. Make sure to submit the Request for Reconsideration right away regardless, as this preserves her appeal rights while you sort everything out. Good luck!

I'm new to this community but wanted to share something that might help. My aunt went through almost the exact same situation last year - her SSI Medicaid got terminated when she received an unexpected inheritance and tax refund in the same month. What really helped her case was keeping detailed records of everything. She made copies of her aunt's will that specifically mentioned the funds being "for final expenses" and got a letter from the tax preparer showing exactly when and how much her refund was. When she went to the SSA office, having all that documentation made a huge difference. The caseworker was actually pretty understanding once they saw it was clearly a one-time situation and not her trying to hide assets. They reinstated her benefits within about 6 weeks after she filed the appeal. One thing I learned from her experience - if you can't get through to SSA by phone, sometimes showing up at the office first thing in the morning works better. She went at 8 AM when they opened and only waited about 20 minutes to be seen. Really hoping your mom gets this sorted out quickly. The stress of potentially losing healthcare coverage is terrible, especially when it's just a misunderstanding about the rules.

I'm so sorry your mom is going through this stress - I know how overwhelming these SSI resource limit issues can be. I went through something similar with my disabled brother about 3 years ago when his settlement check put him over the limit. One thing that really helped us was contacting our local disability advocacy organization. They had someone who specialized in SSI cases and knew exactly which forms to file and what documentation SSA would need. Many of these organizations offer free help for situations like this. Also, based on what others have mentioned about the tax refund exclusion - make sure your mom specifically uses the phrase "tax refund exclusion" when talking to SSA. Sometimes you have to be very specific about which exclusions you're claiming or they might not apply them properly. The good news is that since she got a 6-month notice rather than immediate termination, SSA is giving her time to resolve this. That suggests they recognize it might be fixable. With the tax refund exclusion and potential burial fund designation, it sounds like she might not even need to spend anything down. Keep us updated on how the SSA visit goes - there are a lot of people here who've been through similar situations and want to help!

I'm new to this community but have been following this thread closely as my sister went through almost identical circumstances last year. Reading through all the excellent advice here, I wanted to add a couple of practical tips that really helped us navigate the SSA system during her resource limit issue. First, when you go to the SSA office tomorrow, bring multiple copies of everything - the will mentioning "final expenses," tax documents showing the refund amount and date, bank statements, and any other relevant paperwork. The staff sometimes need to make copies for different departments, and having extras speeds up the process. Second, if possible, try to speak with a supervisor or experienced claims representative rather than just the front desk staff. We found that the more experienced workers were much better at understanding the various exclusions and how to properly apply them to the case. The tax refund exclusion and burial fund designation that others mentioned should definitely resolve this situation, but don't be discouraged if it takes a few visits or calls to get everything properly documented in their system. Sometimes you have to be persistent and explain the exclusions multiple times before they're correctly applied. Wishing your mom the best outcome tomorrow! The fact that so many people here have successfully resolved similar situations is really encouraging.

I'm new to this community but wanted to share some additional resources that might help with your mom's situation. After reading through this thread and seeing all the great advice about tax refund exclusions and burial funds, I wanted to mention that many states also have SHIP (State Health Insurance Assistance Program) counselors who can help navigate Medicare/Medicaid issues for free. Also, if your mom qualifies for the burial fund exclusion and tax refund exclusion as discussed, make sure to ask SSA to document both exclusions in writing in her file. This can prevent similar issues if she receives tax refunds or other one-time payments in the future. One thing I learned from helping my neighbor with a similar SSI resource issue is that SSA sometimes makes calculation errors, especially when multiple exclusions apply. Don't hesitate to ask them to walk through their math step-by-step to make sure they're applying all the exclusions correctly. The combination of the tax refund exclusion ($1,420) and potential burial fund designation ($1,200) should definitely get her well under the $2,000 limit. Good luck at the SSA office tomorrow - it sounds like you're going in well-prepared with all the documentation and knowledge from this helpful community!

Welcome to the community! I'm new here too but have been reading through all the helpful advice in this thread. Your situation with your mom's SSI Medicaid termination notice sounds really stressful, but it's encouraging to see so many people who have successfully navigated similar resource limit issues. Based on everything shared here, it sounds like you have a really strong case with the tax refund exclusion and burial fund designation. The math works out well in your favor too - if you can get $1,420 excluded for the tax refund and $1,200 for the burial fund, that leaves only $630 in countable resources, which is well under the $2,000 limit. I don't have personal experience with this specific situation, but I wanted to add that when dealing with any government benefits office, it can really help to stay calm and organized even when you're feeling panicked inside. Having all your documentation ready and being able to clearly explain the exclusions you're requesting will make the process smoother. Best of luck at the SSA office tomorrow! This community has shown me there are so many knowledgeable people who have been through these challenges and come out successfully on the other side. Please do update us on how it goes - I'm sure your experience will help other families facing similar situations in the future.