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She automatically loses SSI and Medicaid, question can she reapply for Medicare, and what would be the best way to handle the money. She lives in New Mexico.

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NOW is Medicare open enrollment, so apply ASAP. Plus call her Medicaid caseworker, but not before she gets the actual inheritance check. Photocopy the check before you deposit it.
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It would not do any good to reapply for Medicaid. Medicare is another story. You can have Medicare and have lots of money. There is a difference between the 2.
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