There have been some new developments in this area of Ohio Medicaid law. Previously in Ohio, any IRA that could be converted into cash, was considered a countable asset. In many cases, the IRA needed to be liquidated and spent down before qualifying for Medicaid. Alternatively, it needed to be converted into an income annuity, which carries with it many complex rules and limitations.

Recently, Ohio Medicaid has been allowing certain IRAs to be exempt from being counted as an asset. The most common example is an IRA owned by an individual who is over age 72 and is only withdrawing the Minimum Required Distribution (RMD) amount each year. In that case, Medicaid has not been counting the IRA as a countable asset and has not been forcing Medicaid recipients to liquidate their IRA. Therefore, potential future Medicaid recipients are advised to limit their withdrawals each year to the RMD amount.

Each situation is different. Therefore, you should consult an attorney who is an expert in Medicaid law before attempting to qualify for Medicaid benefits.

Click Here for the updated rule.