Medicaid Benefits for Individuals with Disabilities in New Jersey Who Are Employed

By Crystal West Edwards, Esq., CELA

There is a common misconception about people with disabilities – namely, that they can’t work because doing so would disqualify them from the government benefits they need for health care.

While the regulations governing eligibility for government benefits vary widely among states, in New Jersey, individuals with intellectual and developmental disabilities can work and still remain eligible for benefits.

In fact, the New Jersey WorkAbility Program is specifically designed so that people with disabilities in New Jersey can work and still get the health care benefits they need.

To qualify for WorkAbility, you must:

• be between ages 16 and 64
• have a disability, intellectual or developmental (as determined by the Social Security Administration or the Disability Review Team at the New Jersey Department of Human Services Division of Medical Assistance and Health Services)
• be working

The work can be part-time or full-time and can be self-employment. You have to show that the individual is working, but there is no minimum threshold of time spent working or earnings from work.

Example. If someone is earning $1.00 a week for one-hour of work (even though that’s not minimum wage), the individual would still qualify for the WorkAbility program.

In order to prove eligibility, an applicant must provide the following documentation:

• one month of paystubs
• a current disability award letter
• bank statements
• Social Security card

While Medicaid will evaluate whether someone meets the medical criteria – i.e., do they have a disability? – it also looks at whether they have income, for purposes of determining initial eligibility for WorkAbility.

Medicaid will also look at whether the person is over or under the income cap for the WorkAbility program as well as whether their money in the bank is less or more than the asset limit for the WorkAbility program.

Let’s take a closer look at the income and asset eligibility requirements.

Earned Income Limit

For the WorkAbility program, while there is no minimum earnings requirement, there is a maximum amount of income one can earn and still qualify. In 2020, the income cap is roughly $64,596 in earned income.

Asset Limit

The asset limit for the program is $20,000.

(Let’s compare that to the income cap for the Medicaid program that provides the highest level of services you can provide to a senior: care in a nursing home. For that Medicaid program, the income cap is $2,000.)

When an applicant’s assets are evaluated for WorkAbility, certain things are counted while others are not. Several key assets are not counted: the applicant's home, car or 401-K/IRA accounts.

In sum, when we think about the $20,000 limit, we think of it in terms of $20,000 in liquid assets.

Unearned Income Limit

Unearned income is income received for reasons other than being employed. It’s passive income – for example, Social Security benefits or financial support from a loved one. If someone is receiving Social Security disability benefits on their own employment record, WorkAbility will disregard that Social Security income altogether.

If Social Security benefits that someone is receiving are based on the work record of their parent – who may have passed away, retired or be disabled himself or herself – there is an income cap for that program. That income cap does vary from year to year; in 2020, it was around $1,064 per month.

Considering these eligibility requirements, and with careful planning, individuals with disabilities living in New Jersey can qualify for significant health care benefits.

This post is for general informational purposes only. The specifics of your situation will determine the government benefits for which you qualify. For a video presentation of this information, please click here. For more detailed information, please visit www.porzioplanning.com or contact us for a free 20 minute telephone consultation.