PSI Ohio Insurance Practice Exam

What determines whether a person passes the financial test to qualify for Medicaid?

1. Federal regulations

2. State law

3. Insurance policy guidelines

4. Personal income

The correct answer is: State law

The correct choice is state law, as Medicaid is administered by individual states within the framework of federal guidelines. Each state has its own criteria for determining eligibility, including the financial tests that assess an applicant's income and assets. While federal regulations provide a baseline for Medicaid eligibility, including certain income limits, it is the state's specific laws that dictate the detailed processes and requirements for applicants. In this case, personal income plays a significant role as it is one of the main factors examined under state law. However, it is the overall legal framework established by the state that decides the nature of the financial test and the thresholds for income and asset limits applicants must meet. This emphasizes the importance of understanding the unique laws and regulations governing Medicaid in each state, making state law the determining factor for passing the financial qualification test.