Hi, I am looking for some help on behalf of my parents, who are both 56. Located in Virginia. They both recently lost Medicaid coverage because they now make too much money (only mom can work, dad is waiting for disability approval). The monthly household income is around $3072, and the income requirement in VA for a household of 2 to qualify for Medicaid (even with Medicaid expansion) is $2351. They are temporarily on marketplace insurance, but they both have many health problems, and the cost of medical care is starting to add up.

How can I lower their modified adjusted gross income so that they can meet the Medicaid income limit? Unfortunately mom’s job does not provide any retirement accounts. Can she begin to contribute to a traditional IRA? And if so, how do I show that on the Medicaid application? Do I include that as an “other deduction”? For how long does she need to be contributing to a traditional IRA for her to be able to show that as a deduction? And would my dad’s household income also be reduced if she is the one contributing to the IRA?

Other advice is also appreciated. We are also looking into better marketplace plans but I don’t think anything will beat Medicaid.

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