Do I need to report one time life insurance receipt to government when I am under different government benefits,

Asked almost 2 years ago - Boston, MA

such as Medicaid and SSI. I was told that if I am under the 200% of federal poverty level- $29,420 for a couple, I don't need to report it. Would this 1 time receipt count as my gross income?

Attorney answers (1)

  1. E. Alexandra Golden

    Contributor Level 19


    Lawyers agree

    Answered . Yes, you're obligated to report the receipt of funds to both Medicaid and Social Security. Your current income has nothing to do with this obligation. Those funds will be considered income in the month received and an asset thereafter.

    You will face a dollar-for-dollar reduction in your monthly SSI payment in the month in which you receive the excess income. The SSI program only allows you to keep $2,000 in cash, so you would need to provide the agency with proof that you spent the money on yourself until you reduced the cash to below $2,000. You cannot give the money away, as that would be considered a disqualifying transfer.

    You do not say which MassHealth program you receive. There are several different MassHealth programs, each of which has its own rules concerning income and assets. If you are on MassHealth Standard (a/k/a Community MassHealth), there is an income cap but no asset limitation.

    You may find it helpful to consult with an elder law attorney for advice specific to your situation.

    E. Alexandra "Sasha" Golden is a Massachusetts lawyer. All answers are based on Massachusetts law. All answers are... more

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