I lost my job. I am 62 years old. I qualify for Medicaid if I don't apply for early Social Security. I live in Delaware. I do not want to lock in a substantially lowered Social Security benefit. I would rather take distributions from my 401K until I find a job. I need medical coverage and as long as I keep my 401K withdrawals around $1200 monthly I will qualify for adult expansion MAGI-based Medicaid (unless I am forced to apply for a reduced benefit from Social Security). Can I wait to file at normal retirement age of 66?

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Jessie - terrific post btw!

2young - waiting to apply to full retirement really pays off over a short time. If you can possibly wait till 70 it's even better!

Also for anyone else reading this thread as it involves SS issues, the rules for couples for "file & suspend" is dramatically changing in a couple of months. If you & your spouse fall into the category to benefit from doing a file & suspend, time is running out to make this happen.
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If you live in a state that had Medicaid expansion you can apply for Medicaid. The only problem there is I don't know how your qualifying for SS and having the IRA will work with that. I don't know if anyone on this group could advise you on that.

Many people fell into an uncomfortable gap when the ACA became active. They didn't have an income, but had too much retirement savings to qualify for Medicaid. Unless the state expanded who they would cover, these people had to purchase insurance the normal way. This is not a bad thing.

What you can do is take distributions from your IRA so that your income is about $14K a year. Then you can apply for subsidy with the marketplace There will be a choice of companies for your state. You can purchase medical and dental coverage. If you are healthy, a lower cost policy should be good. Be sure to read the coverage. The nice thing about this is that doctors will accept these plans, e.g. Humana and bcbs, but many won't take Medicaid. Pay attention to the drug coverage to make sure you have access to one of the pharmacies if you go with Humana. I believe they only work with CVS, Walmart, and one other -- I forget.

The marketplace is very helpful for caregivers. Many of us fell into that gap. When insurance companies doubled the premiums, it put us in a bad spot. Who could afford $700-900 a month! I don't like being subsidized by taxpayers, but what else do we do after what was done? The insurance companies really went wild with premiums before the ACA was enacted.
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Good grief nobody wants to be on Medicaid. Have you any idea how hard it is to find a doctor who will take it?
Medicaid looks at ALL your assets including a 401K. Just because you decide to take out less doesn't mean you get Medicaid.
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