How Does New Jersey Medicaid Treat Outstanding Checks?

Assets must be under the required levels as of the first moment of the first day of the month in which Medicaid eligibility is desired (and maintained each and every month thereafter).  The applicant must be below $2000 for Medicaid Only and $4000 for Medically Needy Medicaid.  This is best determined by examining the account statements balances for the last day of the immediately preceding month.

It can be a bit tricky in the case of checking accounts, since checks written in one month may not have cleared by the first day of the next month.  New Jersey Medicaid will consider outstanding checks tol reduce the balance of the account so long as the checks were written (dated) the preceding month and given to the provider of the goods or services purchased that same month, even if not cashed by that person until the following month.

On the other hand, a debt owed but not paid does not act to reduce the assets.  This is so often misunderstood by clients and often arises in cases of billing by the nursing home.  In many instances, the bill is not presented immediately by the nursing home so the client simply waits, thinking,  “I know I owe them ‘X’, but I’ll pay them when they bill me. “  However, if “x” is $30,000, then the client is “over resourced” until that money is actually paid to the nursing home.  Each and every month that money remains in the account is a month of Medicaid lost, that can never be regained.  If you are over for the month, New Jersey Medicaid says you can’t change that fact.  You can only fix it going forward.