Much to the surprise and dismay of many, Medicaid coverage and benefits cannot simply be simply switched from one state to another. While Medicaid is often thought of as a federal program, each state is given the flexibility to set their own eligibility requirements. Therefore, each state evaluates its applicants independently from each other state. Those wishing to transfer their coverage must re-apply for Medicaid in the new state.
Further complicating matters is the fact that someone cannot be eligible for Medicaid in two states at the same time. Therefore, in order to be accepted by Medicaid in a new state, the individual must first close out their Medicaid coverage with the old state. However, retroactive coverage exists in the majority of the states. Therefore, most senior readers should not be alarmed by a potential coverage gap. Simply put, retroactive coverage allows a Medicaid applicant to receive Medicaid coverage for as many as three months prior to the date of one’s application.
However, as mentioned above, not all states allow this type of coverage for seniors. For example, in February 2019, Florida eliminated 3-month retroactive coverage for all adults except for pregnant women. Therefore, it is crucial one research if retroactive coverage exists (and for which coverage groups) in the state in which one wishes to relocate. Read more about retroactive eligibility.
The process of transferring between states is difficult, but not impossible.
Having given these warnings, it should be mentioned that while this process of transferring Medicaid coverage is difficult, it is not impossible. In addition, there is good news. Even though each state has different eligibility requirements for Medicaid, usually their income and asset limits are very similar. Most people who are financially eligible in one state can generally qualify in their new state with little to no re-structuring of their finances.
More good news is that the Medicaid application review and approval process is fairly quick. Depending on the state, it will usually take between 15 – 90 days to receive a letter of approval. Also, states are prohibited by federal law from having a length of residency requirement. This means one can be eligible immediately upon moving to their new state (or becoming a resident of the new state).
Aside from states having different financial requirements for Medicaid, they may also have different level of care requirements. This applies mostly for the elderly and for long term care. It is entirely possible that an applicant is medically eligible in one state, and when applying in the new state, it is determined they do not require a high enough level of care to be eligible. Therefore, it is strongly suggested that the Medicaid level of care requirement be thoroughly researched in both states prior to beginning the process. Note also that just because both states say applicants “must require nursing home level care,” it does not mean that both states have the same definition of what “nursing home level care” means.
Did You Know?There are Medicaid planners who are familiar with the rules in all 50 states. These professionals can help facilitate the re-application process. Learn more.