If a business that has supported my mother for the last five years goes bankrupt, does this affect her ability to get Medicaid?
If a business that has supported my mother for the last 5 years goes bankrupt, does this affect her ability to get Medicaid?
The question that Medicaid will have about your mother's eligibility is not whether the business has gone bankrupt but what happens after the bankruptcy. In particular, your mother's eligibility for Medicaid would depend on the actual income and assets she has at the time she applies for Medicaid. If the bankruptcy means that her total income drops below the Medicaid eligibility level in the state where she lives, and her assets (not counting the house she lives in) are below the Medicaid eligibility level, she might qualify. If your mother has an ownership interest in the business, one question -- which might be a complicated one -- could be what the value of the business is after bankruptcy. Many businesses reorganize and continue business after a bankruptcy, while others are sold. In either case, you mother might continue to have an interest in an ongoing business, which Medicaid would consider an "asset" belonging to her. How much the post-bankruptcy business is worth, and therefore how much her interest (her asset) is worth, could determine her eligibility.
To learn about the specific Medicaid eligibility rules for the state where your mother lives, use any Internet search engine and enter the words Medicaid and the name of the state, which will take you to the official web site of her state's Medicaid program. Or you can go to the Benefits.gov web site and click on the name of her state. You can also call the Eldercare Locator toll-free at 800-677-1116 and ask for contact information about her state's Medicaid program.
Stay Connected With Caring.com
Get news & tips via e-mail