What does institutional deeming mean?

When a person applies for Medicaid, parental income (for minors) and/or spousal income and assets are treated as available to the individual through “deeming” rules. However, if a person lives in a hospital, nursing home, or other health care facility, only their own income and assets are countable.

If an individual with a disability does not meet the low income requirement for Medicaid eligibility due to spousal or parental income, they may still be able to obtain coverage through a program that waives deeming rules for people who would qualify for admission to a care facility. This is called “institutional deeming,” meaning the state follows the deeming rules that would be in place if the person already lived in a facility. Through institutional deeming, people with disabilities can qualify for Medicaid and get their medically necessary care at home in the community, preventing unnecessary institutionalization.