Income Requirements for Children's Medicaid in Texas

Medicaid covers costs for a variety of medical and nonmedical services for qualified children and adults. Funding comes from both federal and state governments, with states having the responsibility of determining eligibility based on income and other factors. Texas has a children’s Medicaid program to cover uninsured resident children who are either citizens or permanent residents of the country, regardless of the citizenship status of their parents or other adults responsible for their care.

Income Guidelines

• In order to qualify for children’s Medicaid, Texas families must make under a certain income, depending on the size of the family. For example, a family of two will have an income limit of 14,570 annually. Add $3,740 for each additional family member. See reference one for a listing of up to eight people and contact the department for income guidelines beyond families of this size.

Assets

• The state will also look at certain assets when determining a family’s financial status. If the family’s income for family size falls below 150 percent of the federal poverty line, the department will not look at assets like bank accounts, cars or other things that can easily convert to cash. For families who have income above 150 percent of the poverty line, the department will look at assets. In this instance, a family cannot have over $10,000 of assets. The primary vehicle does not count toward this total. Other possible exemptions include retirement and college savings accounts recognized by the Internal Revenue Service.

Expenses

• The state allows applicants to deduct certain expenses to reduce income. Examples include but are not limited to child care expenses, child support and alimony. A person will need to provide documentation of all qualifying expenses. Anyone with questions about acceptable expenses and documentation can call 1-877-KIDS-NOW, as well as for any other information regarding this program.