How will going on Social Security effect Medicaid?

@EricW236758 

Your wife can apply for her own SSDI benefit but it is a long process and is based on the factor that she cannot work (any job).  If her cancer is deemed terminal, she may get SSDI relatively fast based on the SSA Compassionate Allowance list.   Her oncologist and other providers are the best source of this determination of disability.

They need to be onboard with the decision that she is disabled because the determination for this is based on the medical reasoning of not being able to work (any job).  

Now what this might do to her Medicaid benefits - Medicaid benefits are based on income level and low to no asset or resource level. The more income there is, the less likelihood that there is a Medicaid benefit.  There are actually (2) different types of Medicaid -

(1) the ORIGINAL program where benefits are based on LOW INCOME and a category status of:

• elderly (over 65) - includes Long term care
• declared disabled - either under SSDI or SSI - includes long term care
• blind - includes long term care
• pregnant women
• Children under the CHIPS program 

(2)  EXPANDED Medicaid under the ACA program for LOW INCOME abled, bodied individuals less than 65 years old and only based on their yearly Modified Adjusted Income Level.   Assets and Resources are not counted in this category of MEDICAID.  

It seems based on what you have posted that she is getting MEDICAID based on #2 EXPANDED MEDICAID.  

If my assumption is correct based on what info you have given  and IF she files for and receives SSDI, then her MEDICAID status will pass from Medicaid #2 to Medicaid #1 and her income level, with her SSDI benefit, could DISQUALIFY her from receiving Medicaid #1 - at least for FULL Medicaid coverage.  

IF she gets SSDI, then after the wait period of 24months from her date of disability, she would have access to MEDICARE and some of her MEDICARE expense could be covered by the Medicare Savings Program which she may be eligible. 

However, if she is right now under the ACA EXPANDED Medicaid Program (#2) then beginning soon she will be exposed to the new work requirement of either working, volunteering or going to school for some 80 hours a month.,  This requirement would go away if she is successful in getting SSDI because, like I said, if she gets the SSDI approval she will pass from Expanded Medicaid #2 to Original Medicaid #1 IF her income is low enough for MEDICAID #1.  

A remedy to this might be, IF SHE CAN WAIT UNTIL SHE IS 62 YEARS OLD, is to file for both her early retirement at age 62 AND SSDI - that way she will begin to received her reduced (early filing) Retirement benefit and then IF her SSDI application is approved, the SSA will go back to the beginning date of benefits and adjust her benefit upwards to what she should have received under SSDI rather than retirement.

I assume that you know that SSDI is one’s full Social Security benefit as of the date of disability whereas an EARLY retirement Social Security benefit is reduced because of not meeting one’s full retirement age requirement. 

Any Medicaid benefit is gonna be based on 

(a)  income

(b) status based on which Medicaid program she is under at the time #1 or #2 

Have I thoroughly confused you???  The best way to determine what she should do is to determine if she is actually disabled and cannot work (any job).  Rely on her doctors to help in this decision.  Then firm up the numbers - her benefit amount if under SSDI and under early (age 62) retirement.  Then figure out the income limits and any status descriptions under each of the (2) Medicaid programs.  Original Medicaid and Expanded Medicaid.