Medicaid in Florida - The Income Test

In determining Medicaid eligibility in Florida, Medicaid first considers the applicant’s gross monthly income. It is important to note only the applicant’s income is counted. If the applicant is married, Medicaid does not count the well-spouse’s income. When Medicaid considers the applicant’s income, it counts gross income, not just the amount the person receives each month in their social security or pension check. Usually taxes and Medicare insurance premiums are automatically deducted from these monthly checks. Therefore one has to be sure to calculate the total gross income.

Each state implements Medicaid differently. Florida is an "Income Cap" state. This means if a person's gross income exceeds $1,911 per month, he/she does not pass the income test. Normally, the applicant would not qualify for Medicaid. However since 1993, there is now a way to qualify even if the gross income exceeds the cap.

Medicaid in Florida  - Income Trust

In the situation when an applicant’s gross income exceeds the income cap he/she must establish a special Medicaid trust generally known as a “Miller Trust”. In Florida this trust is more commonly referred to as the “Irrevocable Income Trust”. To set up the Irrevocable Income Trust, the applicant must have the trust drafted and executed (usually by an attorney). Next he/she must establish a new checking account in the applicant’s name (e.g. John Doe Irrevocable Income Trust). Each month the person must deposit a portion of their monthly income into this account so that the amount of income leftover is below the income cap. For example: John has $2,011 of gross monthly income. John must deposit at least $100 each month into his Income Trust Account in order to qualify for Medicaid. This account must be set up prior to applying for Medicaid; otherwise the applicant will not pass the income test and therefore not be eligible for Medicaid ICP benefits.