Raise or eliminate medicaid asset tests

States have a multitude of complicated Medicaid eligibility requirements, with many states having a $2,000 asset test (for a single person) to qualify and maintain eligibility in Medicaid, an amount established in 1989. For SSI, which assists low-income older adults and individuals with disabilities, the $2,000 asset test is the strictest limit of any federal program. This very low asset test penalizes savings, makes it extraordinarily difficult to weather emergencies, and also constrains family members from helping their loved ones with disabilities achieve economic security.[1] The asset tests also lead to churn in and out of these programs if individuals temporarily exceed the limit. Because the tests have not been indexed to inflation, each year they apply to more individuals, including those with mental health conditions, including autism and substance use disorders. If the current $2,000 SSI asset limit were adjusted to account for inflation, it would be $10,000 today. The Center on Budget and Policy Priorities, in its analysis of proposals to increase the SSI asset limit to $10,000 (as has been proposed on a bipartisan basis in the Savings Penalty Elimination Act)[2], to $100,000 (which would be consistent with limits of recently created tax-advantaged saving accounts for individuals with disabilities), and to eliminate the SSI asset test altogether, estimates that all would meaningfully increase SSI participation while not ballooning programs costs.[3][4] There is a growing movement to raise or eliminate such asset tests, with California ending its Medicaid asset test in 2024.[5]