As 2020 came to a close, we now look to 2021 and wonder what it has in store. 2020 has been an interesting year, and while we never know what’s on the horizon, there is one piece we can now say for sure: 2021 Medicaid and VA numbers. These are the cost of living adjustments as announced by the Social Security Administration.
Why Is Knowing Important?
Knowing the numbers ahead of 2021 is important with many seniors depending on social security to sustain a living. There are plenty of seniors in this country looking to see what their income will be in 2021. Unfortunately, seniors do not have much of an increase to look forward to as 2021’s increase is 1.3%, less than 2020’s increase, which was 1.6%.
The 2021 Medicaid and Veterans Benefits
Here is a quick rundown of the 2021 Georgia Medicaid numbers:
- Asset Limit Single Applicant – $2,000
- Asset Limit Community Spouse – $130,380
- Monthly Income Limit – $2,382
- Spousal Diversion – $3,259.50
- Burial Designation – $10,000
- Personal Needs Allowance – $70
- Transfer Penalty Divisor – $8,517
What else you need to know:
To clear up some things you need to know in 2021, a community spouse is considered a legal spouse of a Medicaid applicant who isn’t applying for Medicaid themselves.
A Spousal Diversion is the amount of the household income that a community spouse is allowed to keep in the event that their individual income is below the limit.
As for the balance in retirement accounts, which include an IRa or a 401k; this does not count against the applicable asset limit. The distributions from such accounts are then countable as income in the month it is received.
Homeplace property is not considered a countable asset. It is, though; subject to Medicaid Estate Recovery as the death of a Medicaid recipient.
Burial designations can include Term-Life Insurance, as well as the face value of Whole Life Insurance, the countable portion of a pre-need burial contract, and/or a Burial Savings Account.
The 2021 VA Aid and Attendance Facts You Need to Know:
- Maximum Pension Amount Single Veteran – $1,936/mo
- Maximum Pension Amount Married Veteran – $2,295/mo
- Maximum Pension Amount Surviving Spouse – $1,244/mo
Keep in mind:
An applicant is required to have a net worth that is below $130,773. This excludes a home and certain personal belongings.
In addition: Transfer Penalty Divisor: $2,295
The Monthly Income for VA Purposes, known as the IVAP; equals the gross income and minuses the monthly medical expenses. If there is an IVAP below zero, the application will receive the maximum monthly amount. If the IVAP is higher than zero, then the applicant will only receive enough pension required to bring the IVAP up to the maximum benefit.
Here are the wartime periods that are eligible. Keep in mind that each VA claim is unique – there are no guarantees that any claim will be awarded:
- World War II – December 7,1941 – December 31, 1946
- Korean Conflict – June 27, 1950 – January 31, 1955
- Vietnam era – August 5, 1964 – May 7, 1975
- Troops in Vietnam – February 28, 1961 – May 7, 1975
Knowing The 2021 Medicaid & VA Numbers Helps Plan Better
Knowing the numbers and being sure that you are receiving the benefits that you are eligible for requires someone reliable on your side. This is why you need the aid of the professionals at Smith Barid. Smith Barid offers a variety of services, all intended to aid you legally in the year to come.