SSDI and Medicaid coverage in Michigan

In Michigan, receiving SSDI (Social Security Disability Insurance) does not automatically give you Medicaid. Instead, you must meet Michigan's separate Medicaid rules, which depend on your income and assets. Most people on SSDI in Michigan end up on Medicaid because SSDI payments are low enough to fall under the income limit, but the connection is not automatic — you have to request it or meet the rules on your own.

Michigan uses a program called Medicaid for Disabled Adults (also called SSI-related Medicaid) that covers people receiving SSDI or SSI. If you receive SSDI and your income is below Michigan's limit, you can request Medicaid through the Michigan Department of Health and Human Services. The income limit changes yearly; contact your local MDHHS office or call the Medicaid hotline at 1-800-642-3195 to confirm the current threshold.

The key difference: SSDI is a Social Security program that pays you cash based on your work history. Medicaid is a health insurance program run by Michigan that covers medical costs. You can have one without the other, but most SSDI recipients in Michigan may have access to for Medicaid because their monthly SSDI payment is low.

Key Takeaways

  • SSDI does not include Medicaid; you must request Medicaid separately through the Michigan Department of Health and Human Services even if you receive SSDI.
  • Most people on SSDI in Michigan may have access to for Medicaid because SSDI payments fall below Michigan's income limit, but you have to ask for it.
  • Michigan counts your SSDI income and any other income or assets when deciding whether you meet Medicaid rules.
  • Once you are on Medicaid in Michigan, you keep it as long as your income stays below the limit and you report changes to MDHHS.
  • If you lose Medicaid because your income rose, you may still get coverage through your SSDI work incentive programs.

How to request Medicaid when you receive SSDI in Michigan

Start by contacting your local MDHHS office or explore online through MiBridges, Michigan's benefits portal. You can explore in person at any MDHHS office, by phone at 1-855-275-6424, or online at mibridges.michigan.gov. Have your Social Security number, proof of SSDI income (your Social Security statement or award letter), and information about any other income or assets ready.

When you explore, tell MDHHS that you receive SSDI. They will check your income against Michigan's limit. If you are under the limit, you will be sent to the Medicaid program for disabled adults. The process usually takes 30 days from the date MDHHS receives your process. If you are approved, your Medicaid coverage can start as early as the first day of the month you applied, depending on when MDHHS processes your request.

If you are already receiving SSDI and have not yet requested Medicaid, explore now even if you think you might not may have access to. The worst outcome is that MDHHS says no; the best is that you get coverage you did not know was available. Many people on SSDI in Michigan are on Medicaid without realizing they could have had it sooner.

Income and asset limits for Medicaid in Michigan

Michigan's Medicaid program for disabled adults has an income limit and an asset limit. The income limit is set by the state and changes each year; as of 2024, it is roughly 74% of the federal poverty level for a single person, but you must confirm the exact amount with MDHHS because it varies. Your SSDI payment counts as income, as does any wages, pensions, or other money you receive.

The asset limit is $2,000 for a single person and $3,000 for a couple. Assets include savings accounts, checking accounts, stocks, and property you own (but not your home or one vehicle). If your assets are over the limit, you do not may have access to for Medicaid unless you spend down the excess or move it into a protected account.

MDHHS will ask you to report your income and assets when you explore. Be honest and complete — if you underreport and MDHHS finds out later, you may have to repay benefits or lose coverage. If your income or assets change after you are approved, you must report the change within 10 days.

What Medicaid covers in Michigan

Michigan Medicaid covers doctor visits, hospital stays, prescription drugs, mental health care, dental care (limited), vision care (limited), and medical equipment. Coverage includes preventive care with no copay, emergency services, and ongoing treatment for chronic conditions. If you have a disability, Medicaid also covers rehabilitation services and some long-term care options.

One important benefit for SSDI recipients: Michigan Medicaid covers work incentive programs that let you earn money without losing Medicaid. If your SSDI payment increases because you work, Medicaid can stay in place under rules called Plan to Achieve Self-Support (PASS) or Impairment-Related Work Expenses (IRWE). These programs are run by Social Security, not Michigan, but your Medicaid coverage depends on understanding how they interact.

To see the full list of covered services, visit the Michigan Department of Health and Human Services website or call 1-800-642-3195. Coverage can change, so check before you assume a service is covered.

What happens to Medicaid if your SSDI payment increases

If your SSDI payment goes up — because you return to work, receive a cost-of-living adjustment, or have a change in your case — your income may exceed Michigan's Medicaid limit. When that happens, MDHHS will send you a notice saying your Medicaid is ending. You have the right to request a hearing if you disagree, but the process takes time.

Before you lose Medicaid, ask Social Security whether you may have access to for a work incentive program. If you are working and earning more, you may be able to use PASS or IRWE to reduce your countable income and stay on Medicaid. These programs let you set aside income or expenses so that your reported income stays below the Medicaid limit. Social Security handles the paperwork, but you must request it before your Medicaid ends.

If you do lose Medicaid because your income is too high, you may be able to buy coverage through the Michigan health insurance marketplace at healthcare.gov. You may also may have access to for a subsidy to lower your premium if your income is between 100% and 400% of the federal poverty level.

Reporting changes to MDHHS

Once you are on Medicaid, you must report certain changes to MDHHS within 10 days. Changes that matter include: a change in your income (including a change in your SSDI payment), a change in your living situation, a new job or job loss, a change in your household members, or a change in your address or phone number. You can report changes through MiBridges online, by phone at 1-855-275-6424, or in person at your local MDHHS office.

If you do not report a change and MDHHS finds out, you may lose Medicaid or have to repay benefits you were not supposed to receive. If you gain income and do not report it, MDHHS may say you were overpaid and ask you to return the money. It is easier to report the change right away.

You will also have to recertify your Medicaid coverage once a year. MDHHS will send you a form asking you to confirm your income and household information. You must return it by the important date or your Medicaid will end. If you miss the important date, you can request a hearing, but it is better to respond on time.

SSDI work incentives and Medicaid in Michigan

Social Security offers work incentive programs that let you earn money and keep Medicaid even if your income would normally be too high. The two main programs are Plan to Achieve Self-Support (PASS) and Impairment-Related Work Expenses (IRWE). Both let you exclude certain income or expenses from the amount MDHHS counts when deciding whether you stay on Medicaid.

PASS is for people who want to work toward a specific goal — like getting a degree, starting a business, or saving for a car needed for work. You set aside money each month toward that goal, and Social Security does not count that money as income. IRWE lets you deduct work-related expenses caused by your disability — like transportation, medication, or equipment — from your earnings. Both programs require paperwork and approval from Social Security, but they can keep you on Medicaid while you work.

To explore these options, contact your local Social Security office or ask to speak with a work incentive planning specialist. Michigan has Work Incentive Planning and information (WIPA) projects that offer free help understanding how work affects your SSDI and Medicaid. Call 1-866-968-7842 to find a WIPA counselor near you.

Frequently Asked Questions

Do I automatically get Medicaid when I start receiving SSDI?

No. SSDI and Medicaid are separate programs. You must request Medicaid through the Michigan Department of Health and Human Services. Most people on SSDI may have access to for Medicaid because their income is low, but you have to ask for it.

What if I am on SSDI but my income is too high for Michigan Medicaid?

Ask Social Security about work incentive programs like PASS or IRWE. These programs can reduce your countable income and keep you on Medicaid even if your gross income is above the limit. A work incentive planning specialist can help you set one up.

Can I lose Medicaid if my SSDI payment increases?

Yes, if your income exceeds Michigan's limit, MDHHS will end your Medicaid. You will receive a notice with a important date to request a hearing if you disagree. Before that happens, explore work incentive programs or marketplace coverage.

What do I do if my address or income changes?

Report the change to MDHHS within 10 days through MiBridges, by phone at 1-855-275-6424, or in person. If you do not report changes, you may lose Medicaid or be asked to repay benefits.

How do I know if I am on Medicaid in Michigan?

Check your MiBridges account online, call 1-855-275-6424, or visit your local MDHHS office. You should also receive a Medicaid card in the mail if you are approved. If you are unsure, contact MDHHS directly.