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!