I'm a disabled senior on the Medicare Savings Program in New York. Should I receive an inheritance, would that be counted as earned income, thus bumping me from the program? (Dividends and interest currently do not count for me.) Thank you.
First I want to make sure we are talking about the same programs. When you say Medicare Savings Programs, I think of the programs that help with Medicare payments and premiums that come through the Medicaid office: Qualified Medical Beneficiary (QMB); Specifiec Low-income Medical Beneficiary (SLMB); Qualified Individual (QI); and, Qualified Disabled Working Individual (QDWI).
If so, those programs not only have income limits, they also have resource limits. Single individuals must have less than $7,160 to be eligible for the programs. So, depending on the size of the inheritance, you may lose eligibility. However, proceeds of an inheritance are passive income. Also, the programs I spoke of do not differentiate between earned and unearned income.
If you are speaking of a different program, please write back with details of the plan you are inquiring about.
Also, you mention that you are a "disabled senior." If you are over the Normal Retirement Age for Social Security, which is slowly climbing from age 65 top age 67, then Social Security considers you "retired" not disabled. Please clarify that when you write back as the rules may differ.
I look forward to hearing back from you.